Common platforms make GM plants less dependent on a model's success

GM will find a way to keep Lordstown running at capacity, an analyst says.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
LORDSTOWN -- David Cole, a veteran auto industry analyst, has considered something that most people in the Mahoning Valley would rather not think about.
What if the Chevrolet Cobalt is not a big seller?
It shouldn't be a troublesome thought, said Cole, director of the Center for Automotive Research in Ann Arbor, Mich.
After committing $1 billion to the plant, GM has to keep Lordstown running at or near capacity, he said. If the Cobalt isn't keeping the assembly line full, then GM will add another vehicle, he said.
Building more than one type of vehicle at a plant is much easier these days because automakers are building more vehicles on the same platform, which is the base of the car to which distinctive parts are added.
The Cobalt, for example, is being built on GM's Delta platform, which also is being used for the Saturn Ion. The next vehicle to use the Delta platform will be the Chevrolet HHR, a retro vehicle that resembles the Chrysler PT Cruiser. It is due out next year.
Speculation
Erich Merkle, an analyst with IRN in Grand Rapids, Mich., said some industry insiders have speculated that GM may move the Ion to Lordstown in 2007, when the model is scheduled for a major revision.
That decision could depend on what GM decides to do with the Saturn plant in Tennessee, he said. There is some speculation that GM could move its Chevrolet Equinox and Saturn Vue vehicles to the Tennessee plant because they are based on the same platform, known as Theta. The Ion could then be shifted to Lordstown, he said.
Dan Flores, a GM spokesman, said the company isn't commenting on the possibility of Lordstown receiving another model.
"We certainly anticipate the Cobalt will do very well in the marketplace," he said.
Sharing systems
Besides the platform, GM also is designing vehicles to share more systems that can't be seen by the customer, such as heating, suspensions and steering, Cole said.
He said having common systems and platforms not only saves money on design and purchasing but also makes it easier to build different models on the same line.
For example, GM recently built a new Lansing Grand River plant in Lansing, Mich., and is making three Cadillac models there -- the CTS, STS and a crossover vehicle, SRX. Cole said GM is able to build up to five models at the plant and will put in as many as needed to have the plant run at capacity.
In recent years, the Lordstown plant has been making the Chevrolet Cavalier and Pontiac Sunfire, but they were essentially the same car. Vehicles that are built on the same platform today can have vastly different appearances.
Also, automakers are looking for places to make new vehicles that are designed for niche markets. Cole said automakers are coming out with more new models because they are risking less money on them. Design and production costs have been reduced.
GM, for example, is doing more product development on computers, using more common systems in its plants and taking steps to improve worker productivity -- all of which cuts costs, Cole said.
The best bet
One thing, however, will silence any talk of putting another vehicle in Lordstown -- strong demand for the Cobalt.
If GM is building 300,000 Cobalts a year, it won't need to worry about adding another model to the plant, Cole said. The Lordstown complex also will make a Cobalt twin, the Pontiac Pursuit, which will be sold only in Canada.
Merkle said his firm is predicting that Lordstown will build 245,000 Cobalts in 2005, compared with 305,000 Cavaliers in 2003.