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GM’s Lutz: Saturn Astra “priced too high” to compete in U.S. market

09/08/2008, 11:49 AM

By Drew Johnson

Since gas topped the $4 mark earlier this year, small, efficient cars have been selling like gangbusters. MINI is completely sold out for 2008 and most of the efficient models on the market have been selling at a clip of 50,000 units per month. But while the segment continues to thrive, General Motors’ Saturn Astra has been left out of the action.

The Astra hit the U.S. market back and January, but has only managed to tally 7,914 sales – well short of the company’s goal of 25,000 sales. The problem doesn’t lie with the Astra itself – as we can attest to – but rather the car’s high sticker price.

When GM first decided to sell the Belgium-made Astra in the U.S., it targeted a starting price of $15,500. That price was intended to be low enough to entice buyers into Saturn showrooms, but also high enough to leave a little coin in the General’s pocket. However, the value of the dollar dropped during the Astra’s U.S. development, which ruined GM’s well laid plan.

“Well, I have to tell you, the price is no longer $15,500, and the profit is no longer there, either,” GM vice chairman Bob Lutz told Automotive News.

The Astra debuted with a price tag of $15,995, which has inflated to $16,495 over the last eight months – largely due to the poor exchange rate.

GM’s employee pricing boosted Astra sales to nearly 2,000 units in August, but it’s doubtful the Astra will see any promotion beyond that, according to GM market and sales head, Mark LaNeve. Unless GM finds a way to build the Astra in the U.S., it seems that the hatch’s days could be limited on this side of the Atlantic.

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09/08, 11:54 AM

posted by:

HoosierHero

I don’t think the $900 is a problem. There are just too many other, better choices out there. They can’t compete with them.

09/08, 11:55 AM

posted by:

bleenky

Where is “More Oil for GM” telling us how this is all an elaborate ploy by GM to pump up Volt sales? There is a saying that seems to be more and more appropriate when it comes to GM; Too little, too late.

09/08, 12:31 PM

posted by:

JoshyLofty

The Astra has NO marketing. i saw one the other day and was like “OMG AN ASTRA!” cuz i hadn’t seen one yet and then i was like “wait, haven’t they been out a while?” and LLN says since January. holy crap! and i even looked @ one @ the Dallas Auto Show in Feb. and was thinking about getting one! its problem is lack of marketing which makes it forgettable. sad for such a cool little car.

09/08, 12:34 PM

posted by:

snoboardguy21

Could it be that no one even knows they exist? You ask any random person to name 5 small cars. They’re answers are going to be Corolla, Civic, Cobalt, and Focus, while the fifth one is up for grabs. You’re likely to get Cooper, Sentra, G5, Caliber, or Rabbit before you get Astra.

09/08, 12:36 PM

posted by:

johnnycanuck

Despite the fact they never turned a profit, Saturn moved quite a few cars in the 90’s when they looked like baby Oldsmobiles. I’d tell Mr. Lutz to put them on the block with Hummer, but who would want to take something over that really has zero identity of its own? Speaking of the now defunct Olds division, I would rather tell Mr. Lutz they should have invested their efforts in saving that marque as opposed to trying to make plastic cars with body panel gaps wide enough to fire a hockey puck through.

09/08, 12:37 PM

posted by:

A4

Exactly, there is NO marking for this car besides website banners, and there is no performance version either. If the MINI’s production was all regular Cooper and there was no S models yet numbers stayed the same i guarantee there would be an overstock. The Astra is a more of a mans hatchback, the MINI Cooper N/A a girly car, while the Cooper S is the mans alternative. If the Astra came here for $19,900 with the turbo 2.0 or even the supercharged one with a Redline badge and treatment i guarantee it would outsell the regular one. And market it properly on the television, during football games and such. Astra Redline with the Ecotec turbo for 2 grand less than a Cooper S, itll sell.

09/08, 1:00 PM

posted by:

tzu13

…Duh.

09/08, 1:19 PM

posted by:

howsmydriving

Of course Astra landed with a thunk. This car was already half way through its product cycle in Europe when it debuted in the U.S. Plus, 138 hp is nothing to get excited about.
I live in a car-conscious Left Coast city of 500,000 population AND I HAVE NEVER SEEN AN ASTRA ON THE ROAD.

09/08, 1:21 PM

posted by:

howsmydriving

And for second comment: Astra reflects GM’s philosophy that the consumer is stupid. And consumers are stupid, but only up to a point. They eventually catch on and they’re not as stupid as GM believes.

09/08, 1:47 PM

posted by:

beatusmongous

There has been marketing for the Astra…

…on AM talk radio. That’s hardly the place to market a car no one has ever seen. I’ve yet to see a commercial on TV for this car. All I ever see on TV from GM is trucks and Employee Pricing sales.

09/08, 1:50 PM

posted by:

Z06ified

I agree with the above posters – the problem isn’t the price, it is the complete lack of marketing of the car. It’s a new model with a new name – you have to advertise the hell out of it for people to be even aware of it. I haven’t seen hardly any advertising for the Astra, and the few TV spots I did see were all matter of fact promotions, like they expected everyone to know what the car is already. Offering promotions on a car nobody knows about isn’t going to do much good.

I’ll bet 90% of the car buying public in the U.S. has never heard of an Astra or even knows what it is or who sells it.

Whoever the advertising firm is for the Saturn Astra is, I give them an F. I give an F to Lutz too for not even realizing this.

09/08, 2:06 PM

posted by:

oldraven

Come to think of it, the entire Saturn brand is in dire need of some advertising dollars. Two or three spreads in a car magazine (for the whole lineup, not just a particular model) a year just isn’t cutting it. We need to see this thing on TV between 8-11pm.

09/08, 2:06 PM

posted by:

LJ

We went to Two Dealerships… and at one, they were “too busy” for a test drive(both were on a Saturday..2-3 pm ).
The other guy said he ” doesn’t have 20 minutes for a quick test drive”, unquote.
Yeah… I wanna buy from people with attitudes? No.

And 19,800(with automatic) for the xr(3 door)…. no.
Not unless it was 40 MPG, or 0-60 in 7 seconds, and around 30 mpg.

09/08, 2:07 PM

posted by:

LJ

We went to Two Dealerships… and at one, they were “too busy” for a test drive(both were on a Saturday..2-3 pm ).
The other guy said he ” doesn’t have 20 minutes for a quick test drive”, unquote.
Yeah… I wanna buy from people with attitudes? No.

And 19,800(with automatic) for the xr(3 door)…. no.
Not unless it was 40 MPG, or 0-60 in 7 seconds, and around 30 mpg.
Plus, most of the dealerships are 40+ to 60+ miles away.

09/08, 2:11 PM

posted by:

LJ

sorry for the double post(I had to click off this site, and back on, to see my comments appear).
Must be my computer?
I dunno.

09/08, 2:17 PM

posted by:

Nesodian

I don’t think the problem is the price, more like the interior.

09/08, 2:18 PM

posted by:

02WRXPSM

Oldraven, haven’t you seen the ads where the landscape morphs into some strange hallucinogenic trip-fest as the Saturn Vue drives along? I think the message they’re trying to send here is “the glue we use to put the seats together may have some unpleasant and permanent side effects, so don’t breathe while you drive the car.”

Oh, and johnnycanuck said hockey puck. It is like a cliche has taken flight and soared over the rooftops in splendid glory for all to see! Oh, I have to stop sniffing that Saturn glue, it’s making my hands tremble.

09/08, 2:28 PM

posted by:

Need more oil for GM

Americans don’t want to drive small cars unless they have to. The only reason that Americans drive small cars is because they can’t afford real size cars and with GM, you can drive a brand new Chevy Malibu for the price of an Astra. So Americans are are going to go for the bigger car.

09/08, 2:44 PM

posted by:

beatusmongous

I don’t believe that. Some Americans won’t get small cars unless the “have to,” but I love small cars. So do many others. Heck, a ‘Vette isn’t huge, and it’s pretty popular. So is the Cobalt. Civics were wildly popular in the ’80s and ’90s, and for the most part they do well. Corolla sells like crazy. It seems like there are two extremes: people who like very small cars and people who like really freakin’ huge trucks.

I went for bigger because I needed a lot of cargo and passenger space. But without that need, I’d go small for sure. Small cars are fun.

I really don’t think it’s that people don’t like the Astra. I think it’s more that people don’t know the Astra. Give it some good marketing and some more time, and you’ll see improvement. But, like OldRaven said, some good primetime TV advertising is necessary.

09/08, 2:52 PM

posted by:

A4

yeah but a vette is fast, and the cobalt can be, and the astra is just plain slow.

09/08, 3:57 PM

posted by:

livelyjay

Duh. I said this when they first announced pricing for the Astra. I saw one at an auto-x and I haven’t seen a single one on the road.

09/08, 4:06 PM

posted by:

TomF

It’s $3,000 too expensive, you can’t get a two-door unless you opt up to the premium trim level, you can’t haggle at Saturn dealerships, and everyone who pays attention to cars knows the current Astra is a short-timer… the new generation will be out next year.

It’s a shame — I like the idea of driving an Opel in the US. But I have seen exactly one Astra on the road in six months of release, and ZERO marketing. These stealth launches don’t pay off, GM.

09/08, 6:51 PM

posted by:

elviososa

No…it’s not the price…..it’s the GM that messed up again…poor marketing.

09/08, 7:29 PM

posted by:

olds307

Seen an Astra on the road yesterday…… I assumed they havent been selling them yet because 1. no marketing whatsoever and 2. haven’t seen any on the road.

I’d rather have a Cobalt anyway…….. that’s probably the biggest problem…… People want Cheverolets, Pontiacs, and, yes, Oldsmobiles……. NOT SATURNS……..

09/08, 7:32 PM

posted by:

sprockkets

Rather have a top of the line Mazda3 than a base Mazda6 for about the same price.

Bigger and thus heavier is NOT better. Just ask any Mini Cooper.

That and in a compro in C&D the lousy Toyota Corolla ranked higher. Sad.

Taking 9.3s vs 8.6 vs a Corolla is sad. So is getting 24 vs 28 mpg.

Wait, EVERY car was faster than the Astra haha.

09/08, 7:38 PM

posted by:

tyler_is_aero_tt

Figures. I’ve only seen about 2 since they came out. They’re nice looking though.

09/08, 8:38 PM

posted by:

MoparMan

I’ve seen exactly two here in Ohio since they came out. One 3-door and one 5-door. Sad.

09/08, 9:37 PM

posted by:

youngm7

there’s much better choices out there.

I work at a saturn dealer, and I drive a 04 VW R32. The Astra is noisy and slow, even compared to a base Rabbit, which can be had for less (and with AC on the base model!).

I was happy when they brought it here, but I wish they would have put a real motor in it. A 2.0T LNF and a 6 speed would make me consider trading in the R32. Not going to happen though.

09/08, 9:51 PM

posted by:

wallabyguy

A4 is right. What the car needs is some more power and inclusion of some of the more interesting options available in other countries like the glass roof. I’m not suggesting that these versions will outsell the base model but it will draw some much needed attention to the car that it currently doesn’t receive. Add to that the fact the current packaging is terrible (no moonroof option for example) and the mixed bag of interior finishes and it’s no wonder the car doesn’t sell.

09/08, 11:44 PM

posted by:

olds307

All you idiots on this website always clamoring on about how GM and Ford should bring over Euro models etc etc…….. that’s exactly what they did and an article comes up saying they’re not selling and everyone changed their tune!

morons.

09/09, 9:47 AM

posted by:

atomicbri2008

I think the issue with the Astra is the fact it was old when it got here. A 4 speed auto box??? No sport shift? I mean my VW Rabbit has a 6 speed auto and 170bhp for the same price as the Astra. I think GM dropped its own ball. Plus like everyone else has said, there has been absolutely ZERO in the way of advertising of this car. I have only seen it in a commercial once and that was to promote a sale for Saturn. NEVER did I see a commercial saying The New Astra, something different from Saturn. They should have waited for the new one in design then release it.

09/09, 11:10 AM

posted by:

RaineMan

The Astra looks nice… and apparently handles well. The problem I see is a lack of marketing and a lack of horsepower. It has proven to be about as popular as the Ion that it replaced.

09/10, 12:17 AM

posted by:

DeansterTJ

The problem with this car is the target population. They’re trying to sell them the anti-Corolla but the Mazda3 already won that race long ago.

The Mazda3 is faster, cheaper, better on gas, lighter, and better optioned than the Astra. End of story

09/10, 8:37 AM

posted by:

briannutter

Agree with DeansterTJ, we bought a Mazdaspeed3, but the standard 3 sets the standard for a sporty daily driver. I can confirm the Astra has a topspeed of 118 though… They need to be marketing the car the same way Mercury does-to girls who look at cars as “accesorizing”.

10/04, 5:25 PM

posted by:

metalshine91

…personally I’m just glad that GM gave us something new rather than rebadging the Cobalt (again). However, this seems to have had negative side effects because GM is os used to only having to advertise for Chevrolet and, by extension to it’s rebadged models, 60% of the rest of it’s cars that they seems to have for gotten that, even though the Astra is a rebadge, it’s a rebadge of a car not sold in AMerica.

All they need is better exposure for the handsome little car.

 
 
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