It’s a critical moment for General Motors Company (NYSE:GM). This batch of new cars and trucks are the first fruits of its new product development system, which was overhauled in the wake of the company’s 2009 bankruptcy and restructuring.
Some of the first to emerge have been really good, like the Cadillac ATS sedan that was launched last year to strong reviews. But what the new improved General Motors Company (NYSE:GM) hasn’t really had – yet – is a bona-fide mass-market hit product.
Is the new Chevy Impala the car that will change that?
A sharp replacement for a very tired old model
Monday marked the official beginning of production of the all-new 2014 Impala, which will begin appearing at dealers later this spring. With sharp, assertive styling and an elegant interior, it looks to be a huge improvement over its predecessor.
It had better be. That predecessor is one of GM’s oldest models, a car that has sold mostly to rental-car fleets in recent years. About 70% of the outgoing Impala’s sales were to fleets, General Motors Company (NYSE:GM) officials have said, with just 30% to retail buyers.
GM is hoping that the new Impala will reverse that trend, because retail sales are far more profitable than sales to rental-car companies. Certainly the new Impala looks like a strong entry – but General Motors Company (NYSE:GM)’s recent track record with mainstream sedans is a mixed one.
The Malibu didn’t impress, but the Impala must
The Impala’s smaller sibling, the midsized Chevy Malibu sedan introduced last year, hasn’t exactly set the sales charts on fire. While it looked like a solid contender on paper, reviews have been mixed – and its sales numbers haven’t been close to those of the cars that lead its segment.
In truth, the Malibu looks like something of a halfhearted effort when compared with rivals like Ford Motor Company (NYSE:F)‘s striking new Fusion, not to mention Toyota Motor Corporation (ADR) (NYSE:TM)‘s class-leading Camry, which is selling at about twice the Malibu’s pace.