Vintalage
10-08-2003, 10:25 AM
GM has high hopes for redesigned Malibu
Midsize market is the target
By Ed Garsten / The Detroit News
2004 Chevrolet Malibu
DETROIT -- General Motors Corp.'s redesigned Chevrolet Malibu, a $722 million roll of the dice, has begun arriving at dealerships amid hopes the midsize sedan can push GM back to front of the most competitive passenger car segment.
GM is counting on the Malibu to play a major role in convincing consumers its quality problems are in the past, that it's a worthy competitor to market leaders Honda Accord and Toyota Camry. The automaker also aims to create the type of interest in GM passenger cars that already exists for its pickups and SUVs.
"Even if it wasn't a good car, that would make it an important car," said Jim Hall, vice president of the market research firm AutoPacific in Southfield. "It's the first of their cars where they're trying to make a hard push on the car side of the business again. That alone makes it important."
There's added pressure for a flawless launch since the bulk of the vehicles to be evaluated in the annual J.D. Power and Associates initial quality study were built just as production cranked up at GM's Fairfax, Kan., assembly plant last month. The influential study surveys customer quality complaints after 90 days of ownership.
"The launch is going very well," GM spokesman Dan Flores said.
GM sells more than twice as many light trucks -- pickups, minivans and SUV's -- as it does passenger cars. The world's largest automaker has built about 10,000 of the new 2004 Malibu sedans as production volume gradually builds. The pipeline will begin to fill much faster this month in conjunction with a major advertising push kicking off later this month, according to Malibu marketing chief Ed Schoener.
"We'll be firing with all of our guns," Schoener said. "We'd like to get our unfair share of the midsize market."
A station wagon-like model -- the Malibu Maxx -- goes into production later this year.
Schoener said GM hopes to sell 180,000 Malibu sedans and Maxx models in calendar year 2004, which would be almost twice the sales volume of the outgoing model.
To protect the new Malibu's brand value, GM won't dump thousands of models into rental car fleets as it did with the current model. Instead, rental car companies will receive the older model Malibu, renamed the Chevrolet Classic. A "very, very few" units of the revamped Malibu will be placed as rental units in order to create some sampling of the new car, Schoener said.
The tough nut to crack for the Malibu will be so-called conquest customers, customer who currently are driving rival car brands such the Accord and Camry.
Indeed, a Chevy salesman in Southern California, the heart of import country, isn't so sure the Malibu will win converts.
"It will take a little while to prove itself," said Will Synowsky, who works at Anaheim Chevrolet. "I still think Honda and Toyota people will be pretty loyal."
Pricing for the sedan places is competitive with the Accord and Camry. The 2004 Malibu Sedan ranges from $18,995 to $25,575. The Malibu Maxx will sell for $22,225-$27,980.
In comparison, the Honda Accord is listed at $15,900-$28,500 and the price range for the Toyota Camry is $19,045-$25,405.
In the Detroit area, where there is greater loyalty to U.S. brands and a high concentration of company employees and family members entitled to discounts, early reaction to the new Malibu has been enthusiastic.
Scott Montgomery, at Les Stanford Chevrolet in Dearborn, said he sold a new Malibu last week to an import owner on the strength of its styling and attractive lease program.
"The looks attract people," said Mark Pawelski, sales manager at **** Genthe Chevrolet in Southgate. "I sold one right off the truck. I think it will be a very valuable conquest tool."
"Someone came in to pick up an '03 Malibu, saw the '04 and said, No, I'll take that one,'" said Kenn Elliott, sales manager at Holiday Chevrolet in Farmington Hills.
The true strength of the 2004 Malibu won't be known for several months when the Maxx joins the lineup, but Pawelski says he's had one important indication already.
"When the sales staff is that excited about a new product, I knew this car was a hit."
GM is betting the $722 million it took to create the 2004 Malibu, that it is.
You can reach Ed Garsten at (313)223-3217 or egarsten@detnews.com
Midsize market is the target
By Ed Garsten / The Detroit News
2004 Chevrolet Malibu
DETROIT -- General Motors Corp.'s redesigned Chevrolet Malibu, a $722 million roll of the dice, has begun arriving at dealerships amid hopes the midsize sedan can push GM back to front of the most competitive passenger car segment.
GM is counting on the Malibu to play a major role in convincing consumers its quality problems are in the past, that it's a worthy competitor to market leaders Honda Accord and Toyota Camry. The automaker also aims to create the type of interest in GM passenger cars that already exists for its pickups and SUVs.
"Even if it wasn't a good car, that would make it an important car," said Jim Hall, vice president of the market research firm AutoPacific in Southfield. "It's the first of their cars where they're trying to make a hard push on the car side of the business again. That alone makes it important."
There's added pressure for a flawless launch since the bulk of the vehicles to be evaluated in the annual J.D. Power and Associates initial quality study were built just as production cranked up at GM's Fairfax, Kan., assembly plant last month. The influential study surveys customer quality complaints after 90 days of ownership.
"The launch is going very well," GM spokesman Dan Flores said.
GM sells more than twice as many light trucks -- pickups, minivans and SUV's -- as it does passenger cars. The world's largest automaker has built about 10,000 of the new 2004 Malibu sedans as production volume gradually builds. The pipeline will begin to fill much faster this month in conjunction with a major advertising push kicking off later this month, according to Malibu marketing chief Ed Schoener.
"We'll be firing with all of our guns," Schoener said. "We'd like to get our unfair share of the midsize market."
A station wagon-like model -- the Malibu Maxx -- goes into production later this year.
Schoener said GM hopes to sell 180,000 Malibu sedans and Maxx models in calendar year 2004, which would be almost twice the sales volume of the outgoing model.
To protect the new Malibu's brand value, GM won't dump thousands of models into rental car fleets as it did with the current model. Instead, rental car companies will receive the older model Malibu, renamed the Chevrolet Classic. A "very, very few" units of the revamped Malibu will be placed as rental units in order to create some sampling of the new car, Schoener said.
The tough nut to crack for the Malibu will be so-called conquest customers, customer who currently are driving rival car brands such the Accord and Camry.
Indeed, a Chevy salesman in Southern California, the heart of import country, isn't so sure the Malibu will win converts.
"It will take a little while to prove itself," said Will Synowsky, who works at Anaheim Chevrolet. "I still think Honda and Toyota people will be pretty loyal."
Pricing for the sedan places is competitive with the Accord and Camry. The 2004 Malibu Sedan ranges from $18,995 to $25,575. The Malibu Maxx will sell for $22,225-$27,980.
In comparison, the Honda Accord is listed at $15,900-$28,500 and the price range for the Toyota Camry is $19,045-$25,405.
In the Detroit area, where there is greater loyalty to U.S. brands and a high concentration of company employees and family members entitled to discounts, early reaction to the new Malibu has been enthusiastic.
Scott Montgomery, at Les Stanford Chevrolet in Dearborn, said he sold a new Malibu last week to an import owner on the strength of its styling and attractive lease program.
"The looks attract people," said Mark Pawelski, sales manager at **** Genthe Chevrolet in Southgate. "I sold one right off the truck. I think it will be a very valuable conquest tool."
"Someone came in to pick up an '03 Malibu, saw the '04 and said, No, I'll take that one,'" said Kenn Elliott, sales manager at Holiday Chevrolet in Farmington Hills.
The true strength of the 2004 Malibu won't be known for several months when the Maxx joins the lineup, but Pawelski says he's had one important indication already.
"When the sales staff is that excited about a new product, I knew this car was a hit."
GM is betting the $722 million it took to create the 2004 Malibu, that it is.
You can reach Ed Garsten at (313)223-3217 or egarsten@detnews.com