GM: Buy The Sky (Factory)
It’s not news per se. After all, we knew that Wilmington was on GM’s “endangered plant” list. But the idea that GM will somehow attract a buyer for a factory that builds a dead-in-the-water sportscar is laughable. After all, Chrysler still hasn’t found a home for its Viper nameplate, a brand that carries far more heritage and prestige than the Skystice. So what to do with Wilmington?
GM’s halo-of-the-moment, the Camaro, is still in the halo portion of its lifespan. No incentives necessary . . . for now. But long term, GM faces serious challenges as the Japanese automakers prepare to roll out a new generation of compact sports cars. And while the Camaro squares off against the Challenger and Mustang in the neo-pony car wars, the new Japanese offerings aim to offer more economy, efficiency and handling than the three retro-ponies.
Honda’s CR-Z is set to drop late next year, probably with a sportier version of the Insight’s IMA Hybrid system. The original CRX is cited as a major inspiration for the CRZ, which should weigh 2800 lbs and should go on sale in late 2010. Toyota is working on a sub-$30K sports coupe with Subaru, with rear wheel drive and a boxer engine. A hybrid version has been hinted at, as has a return to the MR2 name. And now Nissan is rumored to be working on a Miata-fighting “baby Z,” which should offer a drop-top, RWD and about 200hp according to Autoexpress.
All of this means that by late 2010 or 2011, the compact sports market in the US should be flush with options. Hybrid systems, RWD, boxer-power and drop-tops will give these “end-of-recession-specials” a unique enthusiast appeal that GM will be hard-pressed to compete with. The Camaro’s day in the sun will likely not be a long one, especially in the face of a resurrection of the cheap-and-tossable segment. A Kappa-based coupe with more practicality than the Sky or Solstice (perhaps along the lines of the 2004 Chevy Nomad concept) could keep GM in the fight, but at what cost? Moreover, with so much solid competition coming down the pipeline, who would buy up Wilmington with the intention of building more compromised Kappa sportscars?
More by Edward Niedermeyer
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Ow. We just lost the Chrysler plant down the road in Newark. That's a huge number of blue collar workers to absorb back into the local economy here in Delaware if the GM plant goes too.
This could be a paperwork reshuffle for this factory. Daewoo sells a reskinned version of the Sky/Solstice in South Korea. If they bought the factory (which they'd have to, if they wanted to keep selling the model), then that factory would be a Daewoo factory... and Daewoo is, of course, owned by GM.