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Old 07-14-2011, 05:34 PM   #37
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With Sonic, GM Stands Automaking on Its Head

http://www.nytimes.com/2011/07/13/bu...king.html?_r=1



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ORION TOWNSHIP, Mich. — The only subcompact car being built on American soil will soon roll out of an assembly plant here in suburban Detroit that is as unusual as the car itself.

The production line has been squeezed into half the space of a traditional plant. Welding robots are concentrated in efficient clusters, instead of being spaced along the line, while many of the workers earn half the typical union wage. Even the first coat of rust-proofing has been reformulated so that it is one-hundredth as thick as — and thereby cheaper than — the coating on other cars.

One of the oldest axioms in the auto industry is that no company can build a subcompact car in the United States and make money because they are priced too low. The Ford Fiesta is built in Mexico. The Honda Fit is made in several places, including China and Brazil. But with Americans — and Detroit — rediscovering small cars because of high gasoline prices, General Motors is intent on shattering that notion with its new Chevrolet Sonic. The car, with a base price of around $14,000, will give G.M. a new entry in the lowest tier of the market when it goes on sale this fall. The Sonic is also expected to be a breakthrough in establishing a new level of cooperation between Detroit and the United Automobile Workers.

The radically revamped factory here operates with fewer and cheaper workers, many of whom are paid $14 an hour rather than the full U.A.W. wage of $28 an hour.

The plant itself is smaller and reconfigured to save money, with company executives modeling some of the changes after G.M.’s most efficient factories in Germany and Korea. The production line’s footprint alone was reduced from a million square feet to 500,000 — the equivalent of losing the space of more than two Wal-Mart Super Stores. The energy bill was cut by powering some operations with methane gas from neighboring landfills.

The Sonic will be G.M.’s littlest, and most fuel-efficient, conventionally powered vehicle. It was conceived in 2008 before the federal government’s bailout of the bankrupt automaker, when negotiators from the company and the union began brainstorming about what it would take to make a profitable subcompact car in the United States rather than in low-wage countries.

“We wanted to prove we could do it,” said Diana D. Tremblay, G.M.’s head of global manufacturing.

The U.A.W. tried to persuade the Ford Motor Company to build the Fiesta subcompact in the United States. But Ford chose a plant in Mexico, where the combined wages and benefits of a production worker total less than $10 an hour. By contrast, a full-wage union member in the United States costs G.M. close to $60 an hour. Even an entry-level wage employee costs about $30 an hour in wages and benefits.

While it is not the only factor in producing a profitable subcompact, lower employment costs were critical to the decision to build the Sonic in Michigan. In a groundbreaking labor agreement, the union allowed G.M. to pay 40 percent of its union workers at Orion Township an “entry-level” wage that sharply reduces overall production costs.

“The entry-level wage structure was an important enabler, because obviously the smaller the car the less the margin,” said Ms. Tremblay.

The U.A.W.’s president, Bob King, said the union considered the significance of a competitive subcompact to G.M.’s overall product lineup. The Sonic is the first subcompact that G.M. has tried to build in its home market since the Chevrolet Chevette almost 40 years ago, aside from a brief joint effort with Toyota to build Geo Prizms. The smallest car in its lineup now is the Chevrolet Aveo, a subcompact developed by G.M.’s South Korean subsidiary. A version of the Sonic to be sold overseas will be built in South Korea.

“We are committed to the success of the company,” Mr. King said recently. “We had to talk about a business model that makes sense.”

For all its promise, the Sonic still has to convince consumers that G.M. has found the right formula for an attractive and affordable subcompact. Previous subcompacts efforts like the Geo Prizm and the Aveo were bland and underpowered, and contributed to G.M.’s lackluster reputation in the overall car market.

“G.M. has a lot to prove with the Sonic,” said Joseph Phillippi of the research firm Auto Trends . “They have to cut costs but still put out a competitive car.”

The car itself is a mosaic of innovation to make the Sonic lighter, less costly and more fuel-efficient, including high-strength steel used in its windshield pillars and the ultrathin film applied to prevent rust. The Sonic sedan resembles a shrunken version of the Chevrolet Cruze, while the hatchback version is distinguished by its short rear overhang and upright stance.

The Sonic weighs 500 pounds less and is eight inches shorter than the next biggest car G.M. makes, and its little 1.4-.liter turbocharged engine will deliver the best gas mileage in the company’s fleet. “It will be north of 40 miles per gallon,” said Jim Federico, head of G.M.’s global small cars and electric vehicles.

Still, to get the car to meet cost-saving goals, a team of G.M. engineers and manufacturing specialists also had to adapt and reconfigure the Orion plant, which opened in 1983 and was used to build big cars like the Buick Riviera. G.M. spent heavily in converting the plant, investing $545 million in new equipment and retraining workers — and it shows, from the gleaming floors to the banks of fluorescent lighting that brighten the plant and save $430,000 a year in energy costs. The plant is also the company’s greenest, producing 80 percent less solid waste and using 20 percent less water, all at a savings.

Various stages along the assembly line, like the body shop and trim area, are more compact, with teams of six workers installing parts fed to them on automated carts by independent suppliers who operate inside the plant. That reduces costly inventory and improves productivity. “Normally the suppliers would be five miles away versus 50 feet,” said John Barry, a G.M. manager.

The plant over all employs 1,800, a reduction of 25 percent. To augment the small profit earned on the Sonic, the workers will also make the larger, more upscale Buick Verano on the same line. Overall capacity at the plant is 160,000 cars a year. Even the two shifts have been fine-tuned to four 10-hour days rather than the usual five-day week to better maintain the machinery and save energy.

Every dollar saved is essential for the Sonic to compete, auto experts said. And if the car is a winner with consumers — production begins in August — the Orion factory could become a model.

“This plant has the potential to redefine American manufacturing,” said Harley Shaiken, a labor professor at the University of California, Berkeley. “A success here indicates untapped capabilities.”


I give GM credit for being the only ones to build a sub-compact in the US.
Hopefully though, the cost cutting doesn't prove troublesome. I'm still confident that the Sonic will prove to be a very good car, light years ahead of Aveo.
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Old 07-14-2011, 10:40 PM   #38
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Quote:
Originally Posted by Kal-El View Post
http://www.nytimes.com/2011/07/13/bu...king.html?_r=1







I give GM credit for being the only ones to build a sub-compact in the US.
Hopefully though, the cost cutting doesn't prove troublesome. I'm still confident that the Sonic will prove to be a very good car, light years ahead of Aveo.
Total labor/production costs, location, model name aside...WTF is different about it from the current half model year Aveo that is rolling around out here?

Why the emphasis?
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Old 07-14-2011, 10:56 PM   #39
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Total labor/production costs, location, model name aside...WTF is different about it from the current half model year Aveo that is rolling around out here?

Why the emphasis?
Huh?

You really think there's not much difference?

The difference is greater than any typical complete redesign. Why? Because they are two cars built by two different companies. One by Deawoo, and one by GM. Comparing the Aveo to the Sonic is about the same as comparing the Aveo to the Yaris. Yup, that different.

Does this look like the Aveo?


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Old 07-15-2011, 07:31 AM   #40
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You actually find this car appealing? Yuk! It's uglier than the new Vitz.
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Old 07-15-2011, 08:20 AM   #41
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You actually find this car appealing? Yuk! It's uglier than the new Vitz.
I certainly wouldn't buy one, but I wouldn't say it's ugly. This and the new Yaris are both very good looking. The best looking car in the segment though is the Fiesta.

Just saying that you gotta appreciate how big of an improvement this car is over the Aveo, the worst car of the last 10 years.
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Old 07-15-2011, 11:23 AM   #42
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definitely looks like an improvement over the Aveo.

Not going to be trading in anytime soon, but it'll be interesting to see how the Sonic does at market... and what people think once the actual car can be tested in the real world
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Old 07-15-2011, 12:04 PM   #43
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If it's any indication though, I think the Ford Fiesta and the Focus will have it beat. I've read in Motor Trend that Ford WILL be releasing a souped up version of the Fiesta, putting down 180hp I believe. The Focus will obviously be a bit more.

Looks like the Yaris is once again being outdone by other companies who are updating their subcompacts and boosting power/handling. Such a shame on Toyotas part in my opinion.

Here's some proof and pics of the Fiesta ST
http://www.motorauthority.com/news/1...a-st-spy-shots
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Old 07-15-2011, 12:22 PM   #44
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So is this the realization of the "beat" and "spark" concepts that have been blowing around since 2008-ish? Or is that still going to happen everywhere but the US?

http://www.caranddriver.com/reviews/...t_drive_review
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Old 07-16-2011, 12:57 AM   #45
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it's still the aveo body that screams poor choices.....at least to me...and I hate how there is so much trickle down and not enough differentiation between the models....they all share far too many similar aspects...the center instrumentation/radio panels same as the malibu and the cruze... just my .02
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Old 07-16-2011, 01:57 AM   #46
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i saw a white hatch parked in my neighbor's driveway yesterday. haven't had a chance to ask him about it yet, but it looked pretty nice from a short distance.

i would definately drive one(manual with the turbo, please)!
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Old 07-19-2011, 03:16 PM   #47
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Quote:
Originally Posted by CrankyOldMan View Post
So is this the realization of the "beat" and "spark" concepts that have been blowing around since 2008-ish? Or is that still going to happen everywhere but the US?

http://www.caranddriver.com/reviews/...t_drive_review
Spark is already on sale in a number of countries. There are still rumors it may happen here, too. The Sonic is a straight-up Aveo replacement.
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Old 07-19-2011, 05:20 PM   #48
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Quote:
Originally Posted by Shroomster View Post
Total labor/production costs, location, model name aside...WTF is different about it from the current half model year Aveo that is rolling around out here?

Why the emphasis?
I see what you're saying... It does look pretty similar to what they are selling right now... Doesn't seem too radical of a change on the exterior.

Quote:
Originally Posted by kimona View Post
You actually find this car appealing? Yuk! It's uglier than the new Vitz.
+1. I swear the Aveo and this new Sonic are so hideous. I mean, what's up with the front end on this thing?



No aspect of either car is appealing to me. No, wait there is one good thing about them; they make the Yaris look sooo much better in comparison!
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Old 07-21-2011, 01:15 PM   #49
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Why do I keep seeing pictures of the interior of the sonic with a 6 speed manual when it will not be available with such?
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Old 07-21-2011, 01:22 PM   #50
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I have to admit that GM is at least trying to bring something to the market. I would need to see the hatch in person however I know I don't care for the sedan. It should make a HUGE difference moving away from Daewoo.
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Old 07-21-2011, 10:12 PM   #51
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all i have to say is factory forced induction = win.
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Old 07-22-2011, 07:05 PM   #52
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Quote:
Originally Posted by Shinare View Post
Why do I keep seeing pictures of the interior of the sonic with a 6 speed manual when it will not be available with such?
Where did you hear it wouldn't be available with a six-speed?

Quote:
Originally Posted by Autoblog.com
With a targeted 40 mpg highway from 1.4-liter, six-speed manual-equipped models and a genuinely engaging driving experience, the Sonic has the bones to be a legitimate competitor.
Posted 6/2/11
http://www.autoblog.com/2011/06/02/2...k-spin-review/
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Old 07-24-2011, 10:48 AM   #53
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Love the inside, and hope it does well. But it's still butt ugly, just like the Aveo.
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Old 07-28-2011, 11:13 AM   #54
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Quote:
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Where did you hear it wouldn't be available with a six-speed?



Posted 6/2/11
http://www.autoblog.com/2011/06/02/2...k-spin-review/
The information in the OP.

Quote:
Shifting duties are handled by either a five-speed manual transmission or a six-speed automatic gearbox.
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