GM Saving Billions with Mid-Size Vehicles
08-08-2006, 03:33 PM
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GM Saving Billions with Mid-Size Vehicles
GM Saving Billions with Mid-Sizers - - Source: The Car Connection
New mid-size cars from General Motors-among them, possibly the new Malibu posted here on TheCarConnection this week-are significantly cheaper for the company to develop, according to a report in Automotive News. The paper says GM has been refining its development processes and has trimmed $1 billion from the development tab it would have accrued under its former ways. The News says GM is apportioning projects to centers of expertise around the world, eliminating competition within the GM empire, and is cutting its engineering expenses as a result. Nine new vehicles worldwide will be spun from GM's new mid-size architecture, but the company did not specify which vehicles they were.
08-08-2006, 04:43 PM
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Damnit. I should have bought at $19... I won't keep harping on it... I'm done. These are the signs that make it evident that GM is on the right track. Legacy costs are staggering, sure, but these are the cost cutting methods that the Japanese have used for years to kick the Big 3's ass. The midsize platform they're referring to is Epsilon, and Epsilon II, ofcourse.
08-08-2006, 07:32 PM
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But everyone is doing that with Nissan the best/worst at cost cutting by sharing stuff. No one whores out platforms like the FM and drivetrain like the VQ better than Nissan.
down to 31 now...
08-09-2006, 07:59 AM
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Originally Posted by biker
But everyone is doing that with Nissan the best/worst at cost cutting by sharing stuff. No one whores out platforms like the FM and drivetrain like the VQ better than Nissan.
Good, now maybe they will actually give us a bonus this year.
08-09-2006, 10:52 AM
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Originally Posted by titan
It's easy to use words like "whoring out" platforms, but it's the way to bring these huge companies' economies of scale into play.
Indeed.
Ultimately, the production costs saved by "whoring" likely reduces the market price (i.e.: MSRP) to price points that are less than with dedicated platforms.I will go a little further and state that I would consider Nissan "whoring" the FM platform only if they marketed identical vehicles with different names. (i.e.: Ford Taurus/Mercury Sable) The fact that the FM platform underpins the FX, M, G and Z does little to hurt the appeal of each as each have their own distinguishing characteristics. Simply put, one cannot drive around in an M45 and then state that it feels like the 350Z. Such has not been the case for many Ford/GM/Chrysler products and was probably one of reasons why Nissan decided against an I35 based on the 6G Maxima.
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08-09-2006, 01:47 PM
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Originally Posted by F23A4
Indeed. Ultimately, the production costs saved by "whoring" likely reduces the market price (i.e.: MSRP) to price points that are less than with dedicated platforms.
I will go a little further and state that I would consider Nissan "whoring" the FM platform only if they marketed identical vehicles with different names. (i.e.: Ford Taurus/Mercury Sable) The fact that the FM platform underpins the FX, M, G and Z does little to hurt the appeal of each as each have their own distinguishing characteristics. Simply put, one cannot drive around in an M45 and then state that it feels like the 350Z. Such has not been the case for many Ford/GM/Chrysler products and was probably one of reasons why Nissan decided against an I35 based on the 6G Maxima.
Ultimately, the production costs saved by "whoring" likely reduces the market price (i.e.: MSRP) to price points that are less than with dedicated platforms.I will go a little further and state that I would consider Nissan "whoring" the FM platform only if they marketed identical vehicles with different names. (i.e.: Ford Taurus/Mercury Sable) The fact that the FM platform underpins the FX, M, G and Z does little to hurt the appeal of each as each have their own distinguishing characteristics. Simply put, one cannot drive around in an M45 and then state that it feels like the 350Z. Such has not been the case for many Ford/GM/Chrysler products and was probably one of reasons why Nissan decided against an I35 based on the 6G Maxima.
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