GM’s New Model Intros Scarce for 2011

Two years ago, people thought the writing was on the wall for Detroit. General Motors and Chrysler, in particular, were in dire straights. Say what you will about the government bailout, but the fact is that both companies have risen like a phoenix. Fresh from a $4.7 billion profit for 2010, General Motors has started the new year with moxie that it hasn’t had in years. But 2011 is going to be a slow year for new models, muting GM’s momentum.

Chevrolet introduced the Cruze in the fall and the reviews have been very encouraging. However, Chevy is facing stiff competition from Ford’s new Focus. And the Volt was introduced in December, yet its roll-out has been limited to a few markets.

The rise in gas prices due to tension in the Middle East (what else is new?) may increase interest in these cars, but the Detroit News reports industry analysts also concerned with the lack of new models for 2011. According to Jeremy Anwyl, CEO of Edmunds.com, “The marketplace today is very focused on new vehicles.In the absence of exciting, new products, the only lever car companies have to pull is incentives.”

Coming soon from General Motors will be the Chevrolet Sonic and Buick Verano. The Sonic is the replacement for the unloved Aveo, while the Verano is similar to Chevy’s Cruze, which is based on Opel’s Astra. It “has the kind of proportions not unlike the LaCrosse,” notes Buick design director David Lyon. It shares no sheetmetal with the Cruze, and it has “portholes” on each side of the hood. Think of the 1961 Buick Special and you’ll get an idea what role the Verano will play.

GM officials say they’ll keep the momentum going by placing greater emphasis on service-oriented marketing programs and tout new technologies, like the new battery-powered E-Assist, which will debut on the 2012 Buick Regal and LaCrosse going on sale later this year. And the Equinox and Cruze will receive MyLink, an infotainment system similar to Ford’s SYNC.

Chris Liddell, GM’s chief financial officer, warned that a shift in its product mix to smaller, less lucrative cars this year could result in a “slight negative” on the bottom line. In other words, don’t start giving up on General Motors just yet, folks!