Saturn Likely To Nix L Series

[ragingfish]

From: http://www.detnews.com/2004/au...4.htmQuote »Saturn may drop L-SeriesDespite high hopes, slow sales have GM ready to end production earlier than plannedBy Ed Garsten / The Detroit NewsDETROIT — General Motors Corp. is likely to stop production of the failed Saturn L-300 midsize passenger car ahead of schedule because of disappointing sales and bulging inventories, according to sources familiar with the situation. The L-Series was launched in 1999 with great expectations and a mission to compete with industry-leaders Toyota Camry and Honda Accord. Instead, it has become a key reason that Saturn has struggled in recent years. Even a redesign for the 2003 model year and beefed up advertising failed to ignite consumer interest. Last year, L-Series sales dropped 20 percent from 2002, according to Autodata Corp. Last month, sales plummeted 78 percent from a year earlier. By the end of January, dealer lots were jammed with a 151-day supply of the L-300 sedan, according to Farmington Hills-based CSM Worldwide, an automotive forecasting firm. “Clearly, the vehicle has missed its market by a long shot,” CSM Worldwide analyst Mike Jackson said. Saturn has said it planned to end production of the L-Series next year, replacing it in 2006 with a new midsize car based on the same underpinnings as the Chevrolet Malibu and Malibu Maxx, Pontiac G6 and Saab 9-3 and Opel Vectra. But people familiar with the matter said with sales slowing, GM likely will pull the plug on L-Series production this year. Saturn spokeswoman Sherrie Childers-Arb said the door is open to changes in the L-300 production schedule. “We’re looking at the production plans for the L-300 and we are reviewing them,” Childers-Arb said. The plant in Wilmington, Del., that builds the vehicle has been shut down intermittently for a number of weeks over the last several months because of lagging sales, and is scheduled for a four-week shutdown beginning Friday. CSM Worldwide estimates the plant is using only 22 percent of its capacity. “Production could certainly handle demand without extending production,” said Alan Baum, director of forecasting at automotive consultant Planning Edge in Farmington Hills. When production of the L-300 does end, the Wilmington plant will be retooled to build the 2006 Pontiac Solstice, a two-seat convertible. At January’s North American International Auto Show in Cobo Center, GM unveiled the Saturn Sky and Chevrolet Nomad concept vehicles, which are built on the same basic structure as the Solstice — the Kappa architecture in GM parlance. The automaker has said it is likely a similarly-based vehicle will be added to the Saturn lineup. Adding a Kappa-based Saturn model to the production mix at Wilmington would make sense, said Jackson, since the low-volume Solstice would not come close to making use of the plant’s 200,000 vehicle annual production capacity. The move would also fit Saturn’s attempt to reclaim the glory it enjoyed when it began selling its plastic-clad cars in 1990 in dealerships that feature a warm, welcoming atmosphere, attentive customer service and no-haggle pricing policy. Positioned as an “import-killer,” Saturn carved out a niche in the marketplace. But GM neglected Saturn for many years while it infused other divisions such as Cadillac with new products. You can reach Ed Garsten at (313) 223-3217 or egarsten@detnews.com