General Motors swaps Hummers for mini-cars as fuel prices soar in the US

The Telegraph ^ | 7/4/2008 | Emma Thelwell

[bruinbirdman]

General Motors, the maker of the iconic off-road Hummer, may be gearing itself up to sell mini-cars in the US, in order to win back market share as soaring fuel costs turn Americans off gas-guzzlers.

Usually sold only in Asia and Latin America, GM is thought to be developing a version of the Chevrolet Beat for America’s highways, according to a report by Bloomberg. Not much bigger than the Daimler Smart car, the Chevrolet Beat does 40 miles to the gallon - making its fuel efficiency second only to hybrid cars in the US.

Chevrolet Beat: sold in Asia and Latin America

The consideration by GM comes after the company’s US sales tumbled 18.5pc last month, while rivals Ford and Toyota also reported dwindling sales, down 28pc and 11.5pc respectively.

Yesterday, shares in General Motors plunged to their lowest level since September 1954 as fears for the company’s future escalated. One analyst at Merrill Lynch told the market that a GM “bankruptcy is not impossible if the market continues to deteriorate”. The group’s shares closed down 15pc to $9.98.

Meanwhile, fellow motoring giant Ford reported a 27pc fall in truck sales for June, with 59pc of sales now secured by cars and cross-over vehicles.

In a further sign that cash-strapped Americans are downsizing, sales of BMW’s Mini jumped 25pc in June. BMW introduced the Mini to the American market in 2002, reaching record sales of 42,045 cars last year. The German carmaker sold 26,400 Mini’s in the first six months of this year - putting it on course for another record. Sales of small cars across the US rose 31pc in the first six months of the year, with sales of the biggest SUV’s falling a corresponding 31pc.

[Cobra64]

Seems like we saw this about 30 years ago.

[Hardastarboard]

Any of you FReepers sell cars, or know anything about the used car market? I'm wondering what kind of trade in value the SUV's have when people come in to trade them in for fuel efficient cars. I'm also wondering what the net effect of fuel prices is on these automobiles?

When you think about it, if you take the aggregate market value of SUV's before and after the dramatic fuel price increases, I would guess that Americans have lost a great deal of asset value (value of their SUV's) due to fuel prices.

[goldstategop]

A rip-off of the Chrysler PT Cruiser!

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Cobra64]

"Chevy Beat?" Now that's an attention getter. Where's the Camaro they showed at the Detroit auto show last century?

[seacapn]

I have an old Geo Metro in a shed that I purchased for $300 a few years ago, as a side project.

I restored it to running order, though it still has problems.

The market value of those things is shooting up month by month. I’m not sure if I should drive it or sell it.

[goldstategop]

Cool! But yesterday's gas-guzzler.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[When do we get liberated?]

I am a bank rep for a leading subprime lender. I will spare you the name as our company is sensitive to other companies knowing what we do. We cut values by 40% on out V8 trucks and SUVs about 2 weeks ago. Let our competitors finance over retail on them and let them take the beating when they are repo’ed and go to auction. Suburbans, Expeditions, Sequoias are all getting about 4,000 to 5,000 less at auction than they would normally at this time of year. Can’t get a Honda Civic for love or money.

[Drew68]

Any of you FReepers sell cars, or know anything about the used car market? I'm wondering what kind of trade in value the SUV's have when people come in to trade them in for fuel efficient cars. I'm also wondering what the net effect of fuel prices is on these automobiles?

There are countless articles telling of dealerships not taking SUVs on trade-ins and private sellers asking thousands below KBB values.

Now is a great time to buy a SUV --if you can afford to put gas in it.

[Sybeck1]

Just great for my family of five!!!!....NOT!!! I guess family trips are out in the future, unless someone rides on the luggage rack on top. That’s if it doesn’t bend the tin top......

[SVTCobra03]

I don’t care how much gas it guzzles. I’ll take the 500+hp LSA Camaro Z28 any day of the week.

[Extremely Extreme Extremist]

I’m thinking about buying a Dodge Omni! (Runs and hides)

[Reagan Man]

>>>>>>I’m thinking about buying a Dodge Omni! (Runs and hides)

Slap that Romney bumper sticker on that Omni, boy!

btw, don't wait another 24 hours to respond... come over and play.

[RayChuang88]

By the way, GM might NOT sell the Beat here in the USA. A much more plausible scenario is GM looking at producing the European Opel/Vauxhall Corsa and Astra models (which need less engineering to meet USA safety standards) here in the USA by 2010-2011 time frame, both models to use the Chevrolet nameplate.

[calex59]

I had a Z28, 1984 Camaro. It was a wonderful car and had the 4 speed auto and a 305 V8. It got 26 to 29 miles per on the freeway. About 20 on surface streets. I would still have it but my ex hit a deer with it and totaled it. Lucky she lived through it, and in fact didn’t get a scratch. Almost cried when she came home and told me about it:)(not for her, for the car!).

[cyberslave]

I sold Volkswagens during the last fuel crisis in 1978. The dealer I worked would hose people who came in with large sized American cars. I remember Ira had a cousin of his bring in a pristine dark red with white vinyl top Oldsmobile Cutlass Coupe, which was the official car of Brooklyn, for a trade in for a gasoline (not a diesel) VW Rabbit (a Rabbit, echh!). He screwed his cousin royally. Took that Oldsmobile up to the auto auction at Manheim PA and make a killing on the car. He got full retail for a used car? This during a supposed energy crisis. In Pennsylvania, people need large cars on their highways and their gasoline didn't have the same rate of taxation as we in New York City. It will be the same way with the SUVs. Don't go to these kiddie cars. They're doomed like the Corvair, the Chevette, the Pinto, the Maverick (maybe John McCain still has one???), the Chrysler imports brought in from Mitsubishi in Japan and from Chrysler Europe (sic France), the Renault, the VW Rabbits, the early Mazda rotary sedans and coupes, the Daewoo, and the beat goes on. Bottom line...this is not a small car country! It is a medium to big car country. SUVs are and continue to be trucks...they'll last well in excess of 300k (just like Volvo 200, 700, and 900 series vehicles). Don't trade them in for mini cars... convert them to Compressed Natural Gas or Propane bi-fuel vehicles. GM, Ford, and Chrysler all have kits to convert these vehicles, including the Hummer which is with the except of the H1 are Chevrolet/GMC chassis-ed Yukons (H3) and Suburbans (H2) with the tough Hummer looking sheet metal. The bi-fuel conversion will allow you to run compressed natural gas or propane in urban areas where you can obtain it more easily (this is not the case in Utah where you can get compressed natural gas virtually any where). On the interstates you can use either gasoline, ethanol, or methanol. CNG and Propane conversion kits run from 140$1500 to $3000 on the internet exclusive of installation cost. It usually take about two years for the payback on the conversion. You can also get factory assembled vehicles on Ebay or directly from GSA auctions as well as municipal and state governments not to mention utility companies.

Additionally, while the Mercedes Benz urban car did better in front end collisions as did the BMW Mini Cooper than the last version of the Ford F150. Google the Internet for the photos from the test. I can't post pics on this site for some reason. Would somebody please explain why not???

Another way to improve mpg on the SUVs is to change the differential gear ratios. And also the tire sizes. Make sure you compensate for speedometer errors or you can expect to see blue lights in your mirrors.

If you have an SUV ... keep it! Weather the storm.
Besides GM will shortly have a Hummer H4 on the market with gas mileage similar to the recent GM crossovers that are now available in Buick, GMC, Pontiac, and Chevrolet lines.

[cyberslave]

Your GEO Metro has the three cylinder engine developed by GM. The car's chassis and body was designed by Suzuki, and was sold west of the Mississippi as the “Swift”. Some Swifts made it east of the Mississippi as Suzuki widened its dealer network from strictly motorcycles to automobiles as well. Strangely, Ford eventually bought Suzuki and their alliance with GM came to an end.

The Metro, particularly the Convertible, is highly sought after. If you have the early carburerated version you can simply install an IMPCO mix and an additional IMPCO propane carburetor on top of your GM carb. With a series of switches and relays you can switch between propane and gasoline. All you'll need is a large aluminum propane tank from a forklift truck.

What I would suggest is that you consider converting the three cylinder GM engine to the four cylinder Suzuki engine if you can get one. If not then you can look for help on the Internet from the GEO Metro user groups. Without any additional information I can't help you right now, but if you want to be more specific I'll try.

[Liberty 275]

“I had a Z28, 1984 Camaro... I would still have it but my ex hit a deer with it and totaled it.”

My wife is lucky I even let her RIDE in my 84 vette. She sure as heck will never get to drive it.

[calex59]

My wife is lucky I even let her RIDE in my 84 vette. She sure as heck will never get to drive it.

Well, yeah, it is great to have hind site! I thought about repairing it but it was too far gone. I do have a 1980 TR7 Drop head coupe now, which is a great car. I don't have the ex though which is another plus!

[CharlesWayneCT]

If you wanted an SUV, realise that you can buy it now for $5000 less. $5000 less will buy a LOT of gas, over a thousand gallons, which will take your SUV over 20,000 miles.