General Motors: The XFE effect

General Motors just won't let the dream die.

SUVs, trucks, and bigger cars are on their way out as the preferred cars in the United States. Car makers across the world are striving to keep up with production for more fuel-efficient, smaller cars, and this even means that car models that are normally sold in different markets are being imported in big numbers as the plans continue to play themselves out.

But for GM's case, they are only really doing this--in theory. Why? This fall, GM will introduce XFE versions (as in “xtra fuel economy”) of its full-size Chevy Silverado and GMC Sierra trucks and the Chevy Tahoe and GMC Yukon sport utility vehicles. Using a combination of improved aerodynamics and mass-reducing aluminum parts, GM has upped the vehicles’ fuel economy ratings by one mile per gallon, to 15 MPG/city and 21 MPG/highway.

Wow. Really? This is the move that a company that has posted significant losses is doing? While the Chevy Volt obviously will be huge, this type of decision making is for the dinosaurs--sure, the diehards will eat this up, but it's not going to bring in new customers--it just won't. And that is what this company needs--new buyers in a hurry. XFE may sound cool, but it won't sound all that great when the numbers continue to plummet or stagnate.

I'll take companies that don't have a clue for 100, Alex.

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General Motors: The XFE effect

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