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GM to use smaller suppliers to meet new CAFE standards

01/18/2008, 2:20 PM

By Drew Johnson

General Motors has announced that it will be relying more on smaller suppliers in the face of stricter CAFE standards. Although GM has strong ties with larger suppliers with fuel-efficient technologies, Bo Andersson, GM vice president of global purchasing, says that some small suppliers have an advantage “because those technologies have not existed before.”

Most of the small suppliers have stayed the same size because their fuel-efficient technology wasn’t needed in a 25 mpg world. Now that 35 mpg is the new standard, automakers suddenly need their technology.

Andersson says that focus on fuel-efficient technologies has increased over the past few months, largely due to the 40% increase in fuel economy mandated by the Federal government. “This is our opportunity to jump on it quick and move as fast as we can,” Andersson told Automotive News. “We know what the targets are, and we will get there. We don’t know how, but we will get there.”

It remains unclear if the small suppliers will be able to keep up with GM’s large volume demands.

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01/18, 2:31 PM

posted by:

johnnycanuck

I just heard yesterday the braintrust we call a government up here has followed suit and adopted the same 35mpg CAFE standards as the US. The good news is there was no mention of reducing the alcohol level in Canadian beer to match the US as well.

01/18, 2:55 PM

posted by:

global_lightning

Wow, new government regulations motivate the industry to develop new technologies. Manufacturer cry and moan, then get down to business. In the 1970’s this worked with emissions, in the 80’s with safety, and now with fuel economy. 10 years from now we’ll look back at what passes for state-of-the-art now and laugh.

01/18, 3:13 PM

posted by:

Seriously

I don’t see the problem, just go to the oil companies and buy the patents for all the fuel saving technology they’ve been scooping up for years. And I’m not talking about shoving a bunch of laptop batteries in the back of a car.

01/18, 3:34 PM

posted by:

frylock350

global_lightning.

The emissions control KILLED performance for nearly 20 years. It killed the big block, and it killed the full-size car. A Toyota Avalon is NOT a full-size car. A 7-series is NOT fullsized. Neither is a 300, S-class or anything we throw the label at these days. Back in the day normal cars were larger than a Lincoln Town Car Executive L (the 127″ wheelbase 80″ wide Lincoln). A 66 Cadillac could be had with a 136″ wheelbase (that’s more than a Suburban kids) and 85″ of width. That’s what a real car is. Its no wonder we all jumped ship to SUVs. This will kill the V8 car and make the V8 an expensive option in pickups.

Yes eventually we’ll have a Corvette with a 1000hp electric motor but in the meantime we’ll be saddled with low-po vehicles and tiny little deathboxes ala Europe. The great part of this nation is that big cars weren’t exclusive to the wealthy and neither were powerful engines. In Europe the S-class is exclusive and rare but over here a Charger Hemi can be had by most people with a modest income. I hate to see that taken away by rich folk whom this will never effect one way or the other. If I’m forced to buy a 6300lb Dodge Ram 2500 Mega Cab to get my size+engine, then so be it, but I’d much rather keep my V8 1500 Chevy or even better buy a truly big RWD Wagon.

01/18, 3:35 PM

posted by:

frylock350

Fairlight,

If Prius is removed from the Mix GM’s economy is flush with Toyotas. Honda doesn’t have truck so they’re nearly impossible to beat.

01/18, 3:42 PM

posted by:

F3INT))AP3X

Johnny they didn’t change the alcohol level in the beer because they know you would have to be smash drunk to pay the prices for cars up there =p

01/18, 3:42 PM

posted by:

Impulsive

‘Fairlight’, ignore the monkey.

Laissez faire attitudes are the first to cry when told to ADAPT. Well, it’s time to ADAPT, bitches. Something you should have done over the last two decades.

And it looks pathetic that leaders act ignorantly in public by stating “we don’t know how we’ll accomplish the goal but we’ll do it”. Leaders lead by example and speaking publicly like this clearly shows who is NOT a true leader.

‘Seriously’, you think the oil companies now admit their control is dwindling? And maybe the reason behind investing their HUGE profits into stock buybacks instead of R&D and exploration?

01/18, 3:58 PM

posted by:

CJC

again Impulsive, CAFE would be fair to U.S. manufacturing if it was applied evenly to ALL cars to be purchased in the country. But as it is written, the regulations are much more stringent on U.S. produced cars. THAT INCLUDES Toyota and Honda in addition to the U.S. Big Three.

Toyota and Honda also get away with higher MPG Averages because they offer I4/V4 engines for the base model, whereas American makers use V6’s which have come closer and closer to the mileage of the I4/V4. When buying a car I doubt anyone chooses not to opt for at least a V6, as in a non-aspirated car, getting onto a busy highway is SCARY with an underpowered car.

So tell me Impulsive, who’s improving the technology and who’s manipulating fleet average numbers?

01/18, 4:06 PM

posted by:

Seriously

Impulsive, I don’t think they’ve lost a thing. Record profits and we’re still paying out the nose. Asides from shipping costs tell me why I can FILL UP my rental Nissan Pathfinder in Qatar for 12.50USD?

01/18, 4:44 PM

posted by:

Get Real

Nano will the new size of all the parts on the new cars.

Then CAFE will be met, and people will die in crashes.

01/18, 4:53 PM

posted by:

Impulsive

‘CJC’, AGAIN, ADAPT or suffer. If ANY manufacturer cannot produce competitive vehicles, they lose. Make V6s that can’t compete? You lose. If YOU don’t want to buy a four cylinder because it’s “scary”, don’t buy it … but if gas prices continue higher, you’ll pay for it. And those who cannot afford it will have buy those same “scary” four cylinders … which then begs the question, can Americans compete at the four cylinder level? Had CAFE been incrementally increased over the last two decades, things might be different now. Unfortunately, being behind the curve means it’s catch-up time.

As for manipulation of numbers, you tell me. If you have a problem with the system’s specifics, deal with them … but that doesn’t negate the need for the system.

‘Seriously’, you tell me … maybe it’s time to move to Qatar.

01/18, 5:03 PM

posted by:

global_lightning

^^^this got cut off my post:
While it may cost more, the Si will make up the difference in the first year with less fuel consumption and cheaper insurance.

01/18, 5:07 PM

posted by:

SwerveEarly

30 years from now do you think anyone will be hunting in barns for that last low mileage unraced 06 Civic. I didnt think so.

This whole debate is crap, better mileage is a good thing. The only unfortunate thing I see is that owning a car is getting more exepensive rather quickly here in U.S. where we had been spoiled with cheap gas since WW2.

01/18, 6:24 PM

posted by:

DeansterTJ

Johnnycanuck, in Montreal it won’t take long to meet CAFE standards of 35 mpg. Most of the cars in this city are Civics, Golfs, etc…

01/18, 6:30 PM

posted by:

global_lightning

No, I’m serious. The Si surpasses the Camaro’s performance, is safer, and is cheaper to own. None of that would had happened without the impulse from safety, fuel economy, and emissions regulations.

Let me put it this way: If someone offered to give you (free) a Civic Si or a fully restored Camaro, which would you choose? (no, you can’t take the Camaro to Barrett-Jackson…) The answer will probably have more to do with your age than any rational decision.

As for what people will collect 40 years from now, that depends on much more than just performance. What drives most collectors is sentiment from their youth. Now, there’s nothing wrong with that, I like watching Speed Channel too…

01/18, 8:10 PM

posted by:

1c3d0g

Good. Perhaps now GM can incorporate some truly unique and innovative technologies in their vehicles that will blow other car makers out of the water.

01/18, 8:22 PM

posted by:

global_lightning

In the 17 years I’ve owned Civics, only once have I done a repair outside of normal maintenenance and oil changes: CV joint replacements. I’ve driven and loved both cars, but time and technology have moved on…

01/18, 8:24 PM

posted by:

johnnycanuck

Let’s see Deanster: I’m recalling what I followed on the slog home tonight- 2 Yaris Hatchbacks (which qualify for a $1000 provincial eco-rebate), an X3 2.5i, and a really nice BMW 2 door wagon that I’d never seen before (I’m going to say something like a late ’80s early ’90s 3 series, almost looked like an M car, very clean and very original). I do a lot of following this time of year because usually my ‘98 Tracker is the only thing I have insured so I’ve got a lot of time to check things out.

By the way, our local sports radio station had the owner of a Mitsu dealer doing a little live sales pitch. He said the Montreal auto show had just started and their big announcement was the Lancer Evolution with 292 horse. I haven’t heard anything on LLN about this, only the 235 horse Lancer. Any idea if this a Canada only offering?

01/19, 9:05 AM

posted by:

DeansterTJ

I don’t know….good question. Wikipedia says the Evo X has 291 hp, 300 lbs-ft of torque, and a detuned version (the Ralliart) has 237/253 (for 2009).

I parked in a lot downtown last night, and saw a pile of Golfs and Jettas, a few Aveos, and a few Cobalts. Also saw a convertible 3-series and a Range Rover, along with another 2 Wranglers and even a Smartcar (in this weather?!)….

Anyways, I think things are going to take another turn for the worse in Montreal. The city is jacking up local taxes (parking lots, movies, etc) like crazy and the recent GST reduction is going to be offset by a new hike in the PST. Inflationary pressure is kicking in, and the foreclosures are starting in the condo market here. I think it’s going to get ugly….

01/19, 9:07 AM

posted by:

DeansterTJ

BTW, was the 2-door wagon the old Z3 hatchback M version? Really ugly, but sick performance?

01/19, 12:51 PM

posted by:

johnnycanuck

No, it was older. Lady I used to work with had an ‘88 328i and it was of that vintage. I wouldn’t be surprised if it was brought from overseas; that’s all the rage over here these days. Drive around in our mostly Asian suburb of Richmond and seems there’s just as many guys driving from the right seat as the left.

Not surprised they’re raising your PST. Here they just keep jacking up our property values so that they can bleed more tax out of us that way.

01/19, 1:54 PM

posted by:

F451

For all you Lutz lovers here is his mug and an article in MarketWatch.

01/19, 2:24 PM

posted by:

autonut

As usual Lutz is full of lies and bullcrap.

 
 
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