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The Game Changer

By , Editor-In-ChiefGary's BioWrite Gary

Malibu

On occasion, it seems that the traditional domestic vehicle manufacturers are playing a game that we can call “Almost.”  In this game, they develop and build vehicles that are “Almost” as good as their competitors.  They never actually “win” playing “Almost.”  That’s because in order to stay in the game they have to continually put in antes in the form of (a) selling with remarkably good deals—for their customers or (b) producing lots of cars for fleet sales—not that there is anything intrinsically wrong with fleet sales, except that if you’re selling in bulk, you get significantly reduced margins compared with selling to individuals.

This is certainly not the case in the light-truck category.  The Biggish Three (not as big as they once were, and arguably getting smaller) are superb when it comes to full-size pickups and SUVs.  Many of the manufacturers against whom they play “Almost” in the car segment, try though they may, have yet been able to capture the lightning in the bottle that is born of years of sweat, toil and ingenuity in this light-truck segment.  There’s something to be said for heritage and longevity.  But let’s not forget about improvement because as is well known—or soon will be—that light-truck segment is not what it once was.  From this morning when I drove into work until this afternoon when I drove back from lunch, gas prices went up by a dime a gallon.  It is beginning to seem like one of those legendary South American countries where inflation rises faster than one can load the wheelbarrow to buy a loaf of bread.  Sure, there will still be the sale of pickups and SUVs.  But the numbers are going to be a whole lot smaller.

It was refreshing to hear Mike Meloeny, Malibu chief engineer, say unequivocally about Chevy’s current-generation of the model, “We didn’t want to be better in midsize.  We wanted to win.”  No playing “Almost” for the folks at Chevy.  They went after Camry and Accord, and while they may have a long way to go in order to get said in the same breath (it is almost as if there is a singular noun “Camryandaccord,” which is said really, really fast), they’re on the right road.

The affable Ed Peper, Chevy general manager and soon-to-be (effective June 1) North America Vice President, Chevrolet Channel (as in marketing channel, not TV), said on April 22, about six months after the launch of the Malibu, that while the previous version of the Malibu was “not a big player in midsize,” with the current model they’ve reversed the trends.  He acknowledged, “These are early results, but they’re promising signs.”  And he said that with some nontrivial understatement, in that in the first three months of ’08, three months that have been bloody red with ink on the books and blood in the streets, they’ve increased Malibu retail sales—yes, retail sales—by 110%.  What’s more, in California, where unless you’re talking Corvette, Silverado or Suburban, the word “Chevrolet” is not in the vocabulary, Malibu sales are up 186%.  Sure, they have a long way to go.  But the thing is, Peper and his people get it.  They understand it.  And I’m willing to bet that going forward, the Malibu will be a mental template of what they have to bring to the market in all segments.

They’re launching a Malibu, the LTZ, with a 2.4-liter four mated to a six-speed automatic.  That’s right: a four-cylinder engine with a six-speed automatic.  The estimated MPGs for this combo: 22 city, 32 highway.  That highway number puts them ahead of the game (i.e., better than Camryandaccord).

In the words of Meloeny, “Engineering has been able to deliver a car. . .that can win in the marketplace.”

That team didn’t play “Almost.”  “Almost” isn’t good enough.  It never has been, and it is certainly the case today