GM's Camaro Business Case - 100,000 Must Be Sold Per Year
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GM's Camaro Business Case - 100,000 Must Be Sold Per Year
Lutz says GM must reach sales goal if concept is built
By JAMIE LAREAU | AUTOMOTIVE NEWS
Published 05/15/06, 2:59 am et
DETROIT -- Product chief Robert Lutz thinks General Motors can sell more than 100,000 units of the Chevrolet Camaro -- and says that's the number required for GM to build a production version of the concept unveiled at the Detroit auto show.
GM is doing "intense work" on engineering for a production version and analyzing the business case, Lutz, GM's vice chairman and global vice president of product development, said in an interview with Automotive News.
He added: "Is it an approved program? No."
In January, Lutz said he expected a decision on building the sporty coupe within six months. GM executives have strongly hinted they will build the Camaro.
Lutz says GM wouldn't consider building the car unless it could sell more than 100,000 a year. He says the Camaro, a car he describes as "a little bit off to the side" of mainstream segments, would draw new customers and promote GM's product quality.
The Camaro would be aimed at the Ford Mustang, which sold 160,975 units in the United States last year. In the peak years of muscle-car coupes, the Camaro sold 200,000-plus units.
The Camaro would be part of GM's coming lineup of midpriced to premium-priced cars on a new rear-drive architecture developed by Holden for the next Commodore. North American production of those vehicles is expected in 2008 or 2009.
By JAMIE LAREAU | AUTOMOTIVE NEWS
Published 05/15/06, 2:59 am et
DETROIT -- Product chief Robert Lutz thinks General Motors can sell more than 100,000 units of the Chevrolet Camaro -- and says that's the number required for GM to build a production version of the concept unveiled at the Detroit auto show.
GM is doing "intense work" on engineering for a production version and analyzing the business case, Lutz, GM's vice chairman and global vice president of product development, said in an interview with Automotive News.
He added: "Is it an approved program? No."
In January, Lutz said he expected a decision on building the sporty coupe within six months. GM executives have strongly hinted they will build the Camaro.
Lutz says GM wouldn't consider building the car unless it could sell more than 100,000 a year. He says the Camaro, a car he describes as "a little bit off to the side" of mainstream segments, would draw new customers and promote GM's product quality.
The Camaro would be aimed at the Ford Mustang, which sold 160,975 units in the United States last year. In the peak years of muscle-car coupes, the Camaro sold 200,000-plus units.
The Camaro would be part of GM's coming lineup of midpriced to premium-priced cars on a new rear-drive architecture developed by Holden for the next Commodore. North American production of those vehicles is expected in 2008 or 2009.
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didnt the early years of the ls1 4th gens sell 100k units (all models)? add the pontiac share that would be included with that, and I think they have a good chance of reaching that goal.
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I am sick and tired of their games. **** GM. I am sick of them. Build the damn car or do not. Just inform us if you wish to have our business or if you wish for us to go elsewhere. I hate this crap!!!
W
W
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Ford sold 161,000 Mustangs last year under just one brand, their own. Ford also created, and now owns the pony car market.
Can GM really conquest 100,000 Mustang lookers, or is the niche much bigger and just waiting for a Mustang alternative?
In any case, I don't think the Camaro can reach the mark GM is setting. But it can probably get close if it comes out faithful to the concept.
Can GM really conquest 100,000 Mustang lookers, or is the niche much bigger and just waiting for a Mustang alternative?
In any case, I don't think the Camaro can reach the mark GM is setting. But it can probably get close if it comes out faithful to the concept.
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Here's a thought: If they want to sell that many , it probably help if they actually did TV commercials for it. What a grand idea: Using TV to ADVERTISE something besides the latest-crossover-econo-minivan-SUV!
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i can see them hitting this mark for the first year of production when the design is new and the hype is at its max. but they will have to continue to advertise it and bring back those loyal GM costumers from the ford and chysler camps. they need to make sure the car performs better than the mustang and challenger, for a better price. dont repeat the same advertising death they commited with the 4th gen
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Yeah, I never saw an advertisement for the 4th gen camaro, not even when they were being cut. I do remember the trans am commercials though; those were pretty sweet.
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#10
Hmmm, 100,000 a year? Back about 20 years ago this wouldn't be a problem. However in today's marketplace 100000/yr are usually reserved for vehicles like minivans, suv's, and sedans - vehicles that are considered daily drivers. Unfortunately the camaro doesn't fit into that category regardless if its equipped with V6 or V8 powerplants.
If GM's really serious about building the camaro, then they should start at around 50000 a year and gradually adjust to market demand. Keep in mind the Camaro will be facing stiff competition from the Mustang and the new Challenger, and the Pontiac GTO. If demand on the Camaro increases (hopefully) then GM will be in a position to allocate more production volume for this car. It's easier and inexpensive to add production volume, then it is to take it away. If GM plays their cards right and the 5th Gen sells well, then that momentum can carry over into the development and launch of the 6th Gen F-body. GM shouldn't try and get everything in one shot with the 5th Gen Camaro - just build on the momentum for future generations.
If GM's really serious about building the camaro, then they should start at around 50000 a year and gradually adjust to market demand. Keep in mind the Camaro will be facing stiff competition from the Mustang and the new Challenger, and the Pontiac GTO. If demand on the Camaro increases (hopefully) then GM will be in a position to allocate more production volume for this car. It's easier and inexpensive to add production volume, then it is to take it away. If GM plays their cards right and the 5th Gen sells well, then that momentum can carry over into the development and launch of the 6th Gen F-body. GM shouldn't try and get everything in one shot with the 5th Gen Camaro - just build on the momentum for future generations.
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Challenger and GTO are in a different class and will not be directly competing with Camaro and Mustang.
Also, both GTO and Challenger will be maxed out at about 25K units per year each, designed to be limited production.
That said, they're still all coupes.
But 100K is definitely not unreasonable.
4th Gen F-Body numbers:
1993: 39,103 Camaros + 14,112 Firebirds = 53,215 Total*
1994: 119,799 Camaros + 45,992 Firebirds = 165,791 Total
1995: 122,738 Camaros + 50,986 Firebirds = 173,724 Total
1996: 61,362 Camaros + 30,097 Firebirds = 91,459 Total
1997: 60,202 Camaros + 30,754 Firebirds = 90,956 Total
1998: 54,026 Camaros + 32,155 Firebirds = 86,181 Total
1999: 42,098 Camaros + 32,209 Firebirds = 74,307 Total
2000: 45,461 Camaros + 31,826 Firebirds = 77,287 Total
2001: 29,009 Camaros + 21,436 Firebirds = 50,445 Total*
2002: 41,776 Camaros + 30,691 Firebirds = 72,467 Total
* - Short model year runs. 1993 late start, 2001 early end.
Looking at those numbers, I'd say 100K for the 5th Gen will be a cinch.
Also, both GTO and Challenger will be maxed out at about 25K units per year each, designed to be limited production.
That said, they're still all coupes.
But 100K is definitely not unreasonable.
4th Gen F-Body numbers:
1993: 39,103 Camaros + 14,112 Firebirds = 53,215 Total*
1994: 119,799 Camaros + 45,992 Firebirds = 165,791 Total
1995: 122,738 Camaros + 50,986 Firebirds = 173,724 Total
1996: 61,362 Camaros + 30,097 Firebirds = 91,459 Total
1997: 60,202 Camaros + 30,754 Firebirds = 90,956 Total
1998: 54,026 Camaros + 32,155 Firebirds = 86,181 Total
1999: 42,098 Camaros + 32,209 Firebirds = 74,307 Total
2000: 45,461 Camaros + 31,826 Firebirds = 77,287 Total
2001: 29,009 Camaros + 21,436 Firebirds = 50,445 Total*
2002: 41,776 Camaros + 30,691 Firebirds = 72,467 Total
* - Short model year runs. 1993 late start, 2001 early end.
Looking at those numbers, I'd say 100K for the 5th Gen will be a cinch.
#12
Originally Posted by OctaneZ28
Challenger and GTO are in a different class and will not be directly competing with Camaro and Mustang.
Also, both GTO and Challenger will be maxed out at about 25K units per year each, designed to be limited production.
That said, they're still all coupes.
But 100K is definitely not unreasonable.
4th Gen F-Body numbers:
1993: 39,103 Camaros + 14,112 Firebirds = 53,215 Total*
1994: 119,799 Camaros + 45,992 Firebirds = 165,791 Total
1995: 122,738 Camaros + 50,986 Firebirds = 173,724 Total
1996: 61,362 Camaros + 30,097 Firebirds = 91,459 Total
1997: 60,202 Camaros + 30,754 Firebirds = 90,956 Total
1998: 54,026 Camaros + 32,155 Firebirds = 86,181 Total
1999: 42,098 Camaros + 32,209 Firebirds = 74,307 Total
2000: 45,461 Camaros + 31,826 Firebirds = 77,287 Total
2001: 29,009 Camaros + 21,436 Firebirds = 50,445 Total*
2002: 41,776 Camaros + 30,691 Firebirds = 72,467 Total
* - Short model year runs. 1993 late start, 2001 early end.
Looking at those numbers, I'd say 100K for the 5th Gen will be a cinch.
Also, both GTO and Challenger will be maxed out at about 25K units per year each, designed to be limited production.
That said, they're still all coupes.
But 100K is definitely not unreasonable.
4th Gen F-Body numbers:
1993: 39,103 Camaros + 14,112 Firebirds = 53,215 Total*
1994: 119,799 Camaros + 45,992 Firebirds = 165,791 Total
1995: 122,738 Camaros + 50,986 Firebirds = 173,724 Total
1996: 61,362 Camaros + 30,097 Firebirds = 91,459 Total
1997: 60,202 Camaros + 30,754 Firebirds = 90,956 Total
1998: 54,026 Camaros + 32,155 Firebirds = 86,181 Total
1999: 42,098 Camaros + 32,209 Firebirds = 74,307 Total
2000: 45,461 Camaros + 31,826 Firebirds = 77,287 Total
2001: 29,009 Camaros + 21,436 Firebirds = 50,445 Total*
2002: 41,776 Camaros + 30,691 Firebirds = 72,467 Total
* - Short model year runs. 1993 late start, 2001 early end.
Looking at those numbers, I'd say 100K for the 5th Gen will be a cinch.
Keep in mind that there will be no Firebird to contribute to the 100,000 mark. Looking at the above numbers with this is mind, I don't think it will happen. Also, when they discontinued the f-body, many potential f-body buyers who have wanted a "New" muscle car in the past few years have probably settled for the Mustang or the GTO;believing there would be no return. As result, when the new Camaro comes out, guess what is sitting in their garage?
The new Camaro would have to be one hell of a machine (no doubt in my mind that is has the potential) to get back those lost potential buyers, and attract new ones. Will GM do be able to do it? Those numbers reflect sales when it was not in the financial **** hole it is today. Many people have lost faith in GM. They also have new competition besides the Mustang- the Dodge Charger. I don't think it will happen.
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FWIW if the V6 model is marketed correctly, and it appeals to the target audience (women) it should be not much of a problem to sell 100k units.
What do you think keeps the Mustang GT (and the other performance editions) going, yep the lowly V6 model, sells like hotcakes to those who like the styling, but for whatever reason don't want the V8
GM needs to make sure the V6 Camaro is not a stripped down basic rental car style, but a full fledged car with most, if not all, the options that are available on the V8 models available on the 6, all the handling, the creature comforts, etc
What do you think keeps the Mustang GT (and the other performance editions) going, yep the lowly V6 model, sells like hotcakes to those who like the styling, but for whatever reason don't want the V8
GM needs to make sure the V6 Camaro is not a stripped down basic rental car style, but a full fledged car with most, if not all, the options that are available on the V8 models available on the 6, all the handling, the creature comforts, etc
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I don't see it happening. That's a lot of Camaro's to sell for one year. Plus do you really want GM to sell that many? IMO it will just water down the name. I think they realistically should aim for 50,000 per year.
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GM, Chevrolet. Journalists were given yet another preview of the Camaro concept this week, but GM would not confirm that the project is a "go." We can confirm, however, that the make-or-break business case for the new Camaro won't be the 400HP V-8, six-speed version, because GM can do that car in its sleep and make it great - and that package is as close to being a "no-brainer" as you can possibly get. The real issue is the V-6 version, a car that must be worthy of the Camaro nameplate, first of all, and be premium in every respect - while delivering an outstanding performance/value equation vis-a-vis the competition. This is the car that GM must get right if the Camaro is going to be a success in the market. We'll stick by what we said immediately after the Detroit auto show, however: The Camaro is a done deal - GM is just making sure that it's every bit as good as people want it to be. And we'll probably get official confirmation of its production timetable by the fall.
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Originally Posted by DrkPhx
I don't see it happening. That's a lot of Camaro's to sell for one year. Plus do you really want GM to sell that many? IMO it will just water down the name. I think they realistically should aim for 50,000 per year.