General Motors has apparently decided to delay introductions and redesigns for almost all of its upcoming models in a drastic cash-saving measure. While there’s probably no good alternative, analysts are already voicing deep concerns. “It’s a very dangerous thing to delay product programs,” John Casesa of the Casesa Shapiro Group told Automotive News. “It’s really the last resort.”
Casesa said the decisions show “how dire the liquidity situation has become.” Moreover, he cautioned such a move makes it almost impossible to avoid sales declines in the future — potentially prolonging GM’s troubles.
With the exception of the already completed Chevrolet Camaro and Buick LaCrosse — and the critically important Chevrolet Volt — nearly all other new models will be delayed at least a few months, including the Cruze small car and refreshed Malibu.
GM’s decision to delay such crucial vehicles as the Cruze has analysts deeply concerned about the future of the beleaguered Detroit automaker.
The good news is so far no vehicles have been scrapped — but nearly everything in GM’s future has been pushed back. The Malibu redesign, for example, will be delayed a year to 2013 and the Cruze will be released as a 2011, not a 2010.
Analyst Doug Scott told the trade journal he finds it hard to believe GM “would not bring the Cruze to market and put everything else on hold.” Scott says “a core model strategy” focused on high-volume cars like the Cruze would be most logical at this juncture. One can only assume GM is hoping sales of its Cobalt will remain strong enough until the Cruze arrives at dealers.
