Automotive News / Industry / Future Vehicle Discussion Automotive news and discussion about upcoming vehicles

GM says it has no hope of making a profit on its new Saturn Sky roadster

Thread Tools
 
Search this Thread
 
Old Jan 18, 2005 | 10:37 AM
  #16  
falchulk's Avatar
Registered User
 
Joined: Apr 2004
Posts: 1,881
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Originally Posted by Omegalock
I always got the impression that their usage of upmarket meant upmarket from being considered the equal of Hyundai and Suzuki. Saturn would kill their emergence before they even got off the launch pad if they started trying to sell cars in the high 20s and low 30s. Not going to happen. Or if it does it won't last long.
Exact quote was upmarket to compete with Lexus. I took that to mean really all the Japanese lux brands. I can easily seeing them targeting the s2000 market, especially with it being discontinued.
Old Jan 18, 2005 | 10:51 AM
  #17  
guionM's Avatar
Registered User
 
Joined: Mar 2001
Posts: 13,713
From: The Golden State
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Originally Posted by falchulk
Exact quote was upmarket to compete with Lexus. I took that to mean really all the Japanese lux brands. I can easily seeing them targeting the s2000 market, especially with it being discontinued.
If true, that's pretty ironic.

Lexus is the exact position GM is taking Buick.
Old Jan 18, 2005 | 10:56 AM
  #18  
Joe K. 96 Zeee!!'s Avatar
Registered User
 
Joined: Dec 2001
Posts: 1,531
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Not that long ago GM was bragging about how it could make a profit on these cars by selling a relatively low amount. 18,000 Solstice's rings a bell.

Ironicly, Toyota had said that it would be making a profit on the new Prius when they came out.

Is it just me or doesn't anyone else remember this....
Old Jan 18, 2005 | 11:01 AM
  #19  
Z284ever's Avatar
Registered User
 
Joined: Nov 2000
Posts: 16,176
From: Chicagoland IL
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Originally Posted by Joe K. 96 Zeee!!
Not that long ago GM was bragging about how it could make a profit on these cars by selling a relatively low amount. 18,000 Solstice's rings a bell.

Ironicly, Toyota had said that it would be making a profit on the new Prius when they came out.

Is it just me or doesn't anyone else remember this....

Not just you, I remember it also.
Old Jan 18, 2005 | 11:20 AM
  #20  
guionM's Avatar
Registered User
 
Joined: Mar 2001
Posts: 13,713
From: The Golden State
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Originally Posted by Z284ever
Not just you, I remember it also.
Perhaps this is where Torana comes in??

Knowing GM the way I think I do (and I emphasize the word think!), I don't believe GM's Product Planning Board, or GM's Board of Directors would have signed off on the Kappa project if they didn't think it would turn a profit. Especially with the pensions they have to deal with and the obvious bite incentives have been taking out of the bottom line. Even the Corvette would be dead right now if it wasn't profitable.

The SSR is based off the Trailblazer, and obviously wasn't as involved as the Solstice-Sky. The Kappa is a whole new "volume" chassis, that can be cheaply reconfigured into a variety of model types. It's also being made in a plant that can produce 200,000 cars.

There's more to all this than Mr. Wagoner is letting on, methinks.
Old Jan 18, 2005 | 11:30 AM
  #21  
unvc92camarors's Avatar
Registered User
 
Joined: Jul 2003
Posts: 3,769
From: cinci
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

you think guy?
it seems like yea, they'd make a profit, only indirectly
get people into the showrooms and with other quality products around (like the aura) they'll prob end up buying that or some other saturn
seems too simple though for some reason
Old Jan 18, 2005 | 11:35 AM
  #22  
SGT Posaune's Avatar
Registered User
 
Joined: Aug 2004
Posts: 413
From: Mannheim, Germany
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

The kappas are supposed to be profitable at 18,000 units. If Saturn only plans on 10,000 selling, the Sky won't be profitable. This is where trying to build two kappa roadsters will become a problem. Can GM find enough market for 36,000 (18,000 of each) per year?

Maybe one of them should be a coupe or a 2+2 kappa.

I would hate to see the bad planning lead to a short life for the Kappas.
Old Jan 18, 2005 | 11:49 AM
  #23  
Z28Wilson's Avatar
Registered User
 
Joined: Aug 2000
Posts: 6,165
From: Sterling Heights, MI
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Originally Posted by guionM
The Kappa is a whole new "volume" chassis, that can be cheaply reconfigured into a variety of model types. It's also being made in a plant that can produce 200,000 cars.
That's what I don't understand....you don't build 2 little roadsters at a total volume of around 30,000 a year in a plant designed for 200,000. Plant underutilization is one big thing that killed the F-car. At least one new product closely related to the Kappa architecture has to be going in there....and we don't know what it is.

I know the HHR is on Delta, but where is it going to be built? Next to the Cobalt or elsewhere?
Old Jan 18, 2005 | 12:17 PM
  #24  
Joe K. 96 Zeee!!'s Avatar
Registered User
 
Joined: Dec 2001
Posts: 1,531
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Originally Posted by SGT Posaune
The kappas are supposed to be profitable at 18,000 units. If Saturn only plans on 10,000 selling, the Sky won't be profitable. This is where trying to build two kappa roadsters will become a problem. Can GM find enough market for 36,000 (18,000 of each) per year?
I don't think it's as easy as saying 18,000 units per model to be profitable. Certainly costs will be shared on common parts. What the number of units required is, I have no idea, but I'd guess it'd be less than 18,000.

Of course, I do remember it being said that it was necessary to keep production low due to the increased cost of the hydroformed frame rails on a large production rate. All this at a 200k capacity facility.

Either something's missing or somethings not right with these facts. I can't connect these dots.
Old Jan 18, 2005 | 01:30 PM
  #25  
SFireGT98's Avatar
Registered User
 
Joined: Oct 2001
Posts: 1,232
From: Orlando, FL USA
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Seems like we have a mystery Kappa car planned. Something has to fill that extra 100k+ space at that plant
Old Jan 18, 2005 | 03:33 PM
  #26  
Melee Penguin's Avatar
Registered User
 
Joined: Oct 2003
Posts: 368
From: Bay Area, CA
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Originally Posted by guionM
Perhaps this is where Torana comes in??

Knowing GM the way I think I do (and I emphasize the word think!), I don't believe GM's Product Planning Board, or GM's Board of Directors would have signed off on the Kappa project if they didn't think it would turn a profit. Especially with the pensions they have to deal with and the obvious bite incentives have been taking out of the bottom line. Even the Corvette would be dead right now if it wasn't profitable.

The SSR is based off the Trailblazer, and obviously wasn't as involved as the Solstice-Sky. The Kappa is a whole new "volume" chassis, that can be cheaply reconfigured into a variety of model types. It's also being made in a plant that can produce 200,000 cars.

There's more to all this than Mr. Wagoner is letting on, methinks.
I thought Torana was a no go? Could they be planning a Solstice or Sky hatch, like those lil BMW hatches maybe? What plant are the Solstice and Sky being built at? Small Velite? I really have no idea.

Last edited by Melee Penguin; Jan 18, 2005 at 03:46 PM.
Old Jan 18, 2005 | 03:48 PM
  #27  
Doug Harden's Avatar
Prominent Member
 
Joined: Dec 1999
Posts: 2,282
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Wouldn't they build the Opel & other export versions here too?
Old Jan 18, 2005 | 03:53 PM
  #28  
Big Als Z's Avatar
Registered User
 
Joined: Mar 2004
Posts: 4,306
From: Jersey Shore
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Could it be possible that the Aura or other car could be made at Willmington? I mean they already made one Saturn mid sized.
Old Jan 18, 2005 | 04:07 PM
  #29  
Z284ever's Avatar
Registered User
 
Joined: Nov 2000
Posts: 16,176
From: Chicagoland IL
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Originally Posted by Z28Wilson
That's what I don't understand....you don't build 2 little roadsters at a total volume of around 30,000 a year in a plant designed for 200,000. Plant underutilization is one big thing that killed the F-car. At least one new product closely related to the Kappa architecture has to be going in there....and we don't know what it is.

I know the HHR is on Delta, but where is it going to be built? Next to the Cobalt or elsewhere?
Kappa will not live long without a high volume Chevy...and I don't mean another roadster.
Old Jan 18, 2005 | 04:12 PM
  #30  
SGT Posaune's Avatar
Registered User
 
Joined: Aug 2004
Posts: 413
From: Mannheim, Germany
Re: GM says it has no hope of making a profit on its new Saturn Sky roadster

Originally Posted by Joe K. 96 Zeee!!
I don't think it's as easy as saying 18,000 units per model to be profitable. Certainly costs will be shared on common parts. What the number of units required is, I have no idea, but I'd guess it'd be less than 18,000.

Of course, I do remember it being said that it was necessary to keep production low due to the increased cost of the hydroformed frame rails on a large production rate. All this at a 200k capacity facility.

Either something's missing or somethings not right with these facts. I can't connect these dots.
Those are not my words, that came from GM several different times. Each Kappa is supposed to be profitable at about 18,000 units.



All times are GMT -5. The time now is 02:27 AM.