The Future of GM Cars

Wired has a story on the future of cars as GM (Bob Lutz) knows it. And it's a complicated picture, indeed.

Lutz sees a future for GM in small cars, hybrids, electric cars, SUVs, trucks, big trucks and more. As the Wired author puts it, we're talking about a long tail. For those not familiar with the terminology, the focus is going to be on diversifying and on the lower production vehicles. In other words, GM is going to have even more options worldwide than ever before.

But Lutz doesn't see a big change in the way US consumers buy their cars, yet. Until gas is $10 a gallon, Lutz doesn't feel like big cars and SUVs are going away.

I have to agree with him, although I would hedge my bet based on the rate of increase. But still, people want, and in some cases need, larger cars and trucks and that isn't going to change.

But there is a shift going on already in the US. Domestic car companies which have focused on larger vehicles for their revenue. Import companies that have focused on smaller, more efficient cars are the more successful for now. Smaller cars have gained in market share and large SUVs and trucks have fallen. Production on the larger vehicles have been cut. There's obviously a big change occurring.

Source: GM Says Americans Won't Give Up SUVs, But They'll Plug Them In | Autopia from Wired.com
. Photo from flickr by idea313.