Ten Cars That Could Save Detroit

The road to recovery in Detroit is so long and pitted that General Motors (GM), Ford (F), and Chrysler might not all make it. Billions in federal aid will help. But the government doesn't build cars, and without top products in the most important segments, the Detroit Three will continue to flounder while the Japanese and Europeans surge ahead. Here are some of the cars that are key to the revival of the domestic automakers:

EV-1. GM famously spent $1 billion trying to build this electric-powered two-seater in the '90s, only to scrap the project because of range limitations and other shortfalls. Critics dubbed the EV-1 a huge flop. But hold on: One of GM's top priorities right now is the Chevy Volt electric plug-in, due in 2010. And much of the technology comes straight from the EV-1. If electric cars catch on and GM ends up a leader, it will be largely due to lessons learned from this failed experiment.

Chevy Volt. Unlike the EV-1, the Volt has a gas engine that kicks in once the battery runs down, so you can't get stranded away from a recharging outlet. Since it's a sedan, the Volt will appeal to families, too. Initial sales will probably be low, thanks to a high price tag and wariness over the technology. And it could be years before GM recoups its investment. But if the Volt succeeds, it will help re-establish GM as a technology leader and provide some badly needed environmental cred. The technology will also get cheaper over time, and it could spread to many other GM models.

Ford Fiesta. All three domestic automakers need to recapture small-car buyers who have fled to imports like the Honda Civic (HMC) that offer better quality and cachet. The European-built Fiesta, due in the U.S. in 2010, will make the case with crisp styling and gas mileage in the mid-30s. Ford could also import the C-Max and Kuga into the U.S. from Europe. If they succeed, "the impact of all three of these Euro Ford vehicles will be huge," says James Bell of Intellichoice.com.

Chevy Cruze. If this subcompact debuts as planned in 2010, it will be a spirited and welcome replacement for the middling Cobalt. A small turbocharged engine could produce high mileage and a bit of excitement, a combo that's been missing from GM's lineup. That might help grab a bit of turf from hot newcomers like the Honda Fit and Nissan Versa (NSANY).

Cadillac Escalade. That's right, there's still a market for huge, gaudy SUVs, and even with sales down, the Escalade remains one of GM's most profitable vehicles. GM became far too reliant on big SUVs, and it's begun the arduous process of retooling assembly lines to build fewer SUVs and more passenger cars. But the Escalade and its downmarket cousins, the Chevrolet Tahoe and GMC Yukon, still appeal to families with gear to haul, boats to tow, and little fear of gas prices.

Ford F-150. This work truck has been Ford's bedrock vehicle, and a perennial bestseller. The housing bust has torpedoed sales, since contractors are prime buyers. But once there's a recovery and building activity picks up, the F-150 will help lift Ford, too.

Jeep Wrangler. Part of Chrysler's problem is a stable of indistinct vehicles that can't get traction in the marketplace. But not the Wrangler. This iconic Jeep remains popular when other off-roaders seem excessive and unnecessary. Some analysts think that deeply troubled Chrysler, which owns Jeep, should rally around its strongest brand, and maybe even rechristen itself as "Jeep Corp."

GMC Acadia. This crossover has been a hit since debuting last year, and GM has covered all its bases by rolling out a Saturn, Buick, and Chevy version. Drivers like the carlike ride and SUV-style amenities, plus it carries seven, which makes it a minivan alternative. Once the economy rebounds and sales pick up, the Acadia could help GM reclaim a lot of turf seized by competitors like the Toyota Highlander (TM) and Honda Pilot.

Chevy Camaro. With gas prices falling, the timing could be just right for this revived muscle car, due in 2009. A new Ford Mustang is coming, too, which could offer car buffs a bit of excitement to balance all the bad news out of Detroit. "A good ol' pony car battle will bring smiles," says Bell.

Chrysler Secret. There's no model by this name, but one of the mysteries in Detroit is what Chrysler has planned for the future. The company has talked about electric cars and imports from China, but there are few official announcements. And a new hybrid version of the Dodge Durango hybrid was canceled just weeks after it debuted this summer. That's a bad sign. With the company hoarding cash and seeking a buyer, Chrysler's future is more uncertain than the price of gas in a year.

See our list of 10 Cars That Sank Detroit.

Comments

[Paul Killinger:]

Allow me to suggest you amend your title...

Ten Cars That Could HAVE Saved Detroit

(But this would have required Detroit to do something other than CRY and BEG the past two years)

2008 Nov 16 11:00 AM

[ARI4USA:]

Your big 10 sounds like business as usual, just when the big three have run off in the ditch. Where is the plan to restruction the industry to be competitive with the rest of the world's auto manufacturers? Without major changes in the way they do business and major consessions by the UAW these companies are headed for the tank. Now w/o a bailout, later with one.

2008 Nov 16 11:39 AM

[Skepto:]

Slam the coffin door shut on these losers.

2008 Nov 16 12:12 PM

[Howard_T:]

The GMC Acadia is not the savior for anyone. I rented one a few months ago, and while it ran well and had lots of nice "bells and whistles", a fundamental flaw soon came to light. I was using the vehicle for work on unimproved roads and hills in desert terrain. I had a tire go flat, and found that the vehicle not only did not have a full-size spare, it had no provision for carrying one. Even though GM promised that the donut spare could go several hundred miles at moderately high speeds, once the spare was on, the vehicle would not handle correctly at low speed, and anything more than 30 mph was out of the question. Oh, by the way, jacking up the vehicle to put on the spare was even more frustrating. The jack is built so that the handle is nearly on the ground, and it is not hinged in any way. This meant that one can only get a half-turn on the jack before having to remove and re-insert the handle.

The whole experience tells me that the stylists and bean counters have kicked the engineers out of the automobile industry, and the traditional American auto makers will soon become extinct. Once auto makers (and sadly, many other American industries) begin to design and build useful and reliable products, the US will again become competitive in the world's markets.

2008 Nov 16 01:28 PM

[usanowGMelect:]

Good paying jobs are the creation of communities giving big corporations, like GM tax abatements. In return GM pays it's workers well which boosts the communities economy. This works well for the hourly insurance worker, the real estate worker, the school worker and the hospital worker. The whole community prospers. GM pays more taxes back to the Governments of this country than all the foriegn automakers combined. Foriegn automakers send their profits not back into your communities, but back to Japan.

By voting to close GM, you vote against your investment in your own community and to allow foriegn interests to entrench deeper in your back yards. I agree that GM needs to redo their business plan because there are lots of mixed signals and this is why congress is taking their time to sort all this out. But to destroy any community in this country as a lesson to unions and poor management would be like cutting off your nose to spite your face. I don't look at this so much a bailout, but as a loan to help out a nieghbor who's fallen to an unfreindly economy. Hell, we're pumping 10 billion into Iraq every month. Just helping a nieghbor out right? Let's help our own with 2 just months of Iraq compensation.
But demand a business plan, that emphasizes that our communities come before retention bonuses, golden parachutes, foriegn investment and global aspirations. Demand union accountability - stem absenteeism, tighten work restrictions, better review family medical leave abuse, throw out appointed position slackers and eliminate job entitlement attitudes.
In turn we should expect work coming back to our communities, which should energize our economy, which hopefully will return the big three to profitability, and in a year or two create a robust return for the taxpayer.
If we don't start to come together soon, we will surely fall apart.
We just have to put politics aside and demand accountability. Please
save the U.S.A.. Don't ask for it, Don't argue about it. Demand it!

Reply |Report abuse

2008 Nov 16 10:32 PM