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Global Development: Part II Europe
General Motors

Peter Hanenberger pictured with Opel Astra.

GM may stand for General Motors but it could equally stand for Globally Multifunctional, for GM is very much a worldwide company. GM in Europe (GME) is represented by Opel and Vauxhall, with the latter a manufacturing business in the UK, but there is strong cross-linking between the many elements that comprise GM globally.

Peter Hanenberger, Executive Vice President, Design, Product and Manufacturing Engineering, is responsible for the development of all GM vehicles outside North America and for the coordination of vehicle development integration with the company's North American Operations. He is based in Germany. Hanenberger cites Holden, GM"s Australian subsidiary, as an example of the company's ability to use its internationalism to meet customer demands: "Holden took the European-developed, rear-drive Omega platform and, based on its own needs, developed it for the Australian market. Now it exports the result to Brazil and Saudi Arabia. The reason for that is that both Brazil and Saudi Arabia are rugged countries like Australia. But the car now has maybe 80% different components to those we developed originally for Europe because it needed to cope with totally different conditions, including heat, dirt, and sand. It has been changed model year after model year, and has been widened and lengthened."

Although Opels and Vauxhalls, sold throughout Europe, are built in 11 countries to exactly similar standards, that is not the case worldwide. The Astra, which is sold across Europe, is also marketed in Brazil, with a Chevrolet badge. But the car is markedly different to its European sibling. "The Brazilian Astra has the same architecture and platform but is designed specifically for that market," said Hanenberger. For example, in Europe, we use a lot of aluminum and lightweight components. Brazil does not. Then there is the highly complex matter of crash behavior. In Europe, we must comply with legislation, which includes NCAP (Euro-New Car Assessment Program)."

A consumer program to provide information about individual car models, NCAP calculates an overall rating for occupant protection on a scale of zero to four stars, based on two tests: an offset frontal impact and a side impact. "This is not necessary in Brazil, which has very high safety standards but not as high as NCAP 4-star. So for the Brazilian market, some components have been taken out. If you want to become a successful volume manufacturer in Latin America you have to aim for a certain volume (we are building 400,000 vehicles a year in Brazil), a certain price and a certain technology. Mercedes-Benz will build the A-class there. If that becomes a competitor for the Chevrolet Astra there is no problem in bringing it to Opel Astra standard, with such things as twin airbags and seat belt tensioners.

"Does this indicate a possible leveling-up of safety and equipment levels across markets? Not in my experience," said Hanenberger. "Those elements are driven by the requirements and strengths people have in buying power. In a market where you only want to sell 10,000 units, you can be more expensive."

Hanenberger takes a pragmatic approach to the matter of emissions: "Look again at Brazil. They have the same engines that we have in Europe and they have the same technology available if they need it. But the legislation for South America is far less stringent than for California or Europe. If competition or legislation in Brazil forces changes, it is just a matter of finding the capacity for suppliers to inject that same technology. But not having to do so now in Brazil makes the car more affordable to customers. Other companies have to learn the experience we have built up over the last 20 years."

There is growing international agreement about emissions standards, agrees Hanenberger, but crashworthiness regulations are another matter: "There are huge institutions in the U.S. and Europe that are not coming together. And Japan is different again. We have tried to get international agreement through the European Union in Brussels; we have tried in the U.S. The lack of it adds to the cost of the car; it's crazy. At present we are developing a new platform for Opel which must achieve NCAP 4-star; but if we use that platform in the U.S., crash requirements are not the same and we need to develop a completely different front end. All this is about unnecessary engineering, manpower, prototypes and investment. Continents are moving apart on the issue of crashworthiness. How do we get it together? It is a cross-functional need, but at times the auto industry is not on the same wavelength, nor are the politicians. We need something on a world basis—a world institution comprising politicians and industrial leaders—to get agreement on crash safety testing.

"It is the customer who would gain most. At present we have to do so many things to keep a car environmentally compatible and safety compatible across markets. If we don't get this thing together and work within the same legislation, we will forget how to make a profit."

While Hanenberger believes emissions and crashworthiness are two areas where global agreement should—and could—be reached, he feels there are others where it seems unlikely, including what customers look for in their cars: "The Japanese, from low to high income, want something highly sophisticated, high-tech, and futuristic—gimmicky, if you like. And the Japanese customer always wants the best. You could not sell a car in Japan now unless it had four- valve technology. And they need Ôinfotainment," with a dashboard screen and an ability to enjoy television when the car is stationary—which is often in Japanese cities. A screen is now a must—so are 12, 16, even 18 speakers. The Japanese need air conditioning that can run for seven hours with the engine at idle most of that time while remaining absolutely stable. Some people regard their car as a cage that protects while it transports; in Japan, the car is regarded as a mobile sitting room."

The U.S., though, is different. Basically, customers there want big cars and hyper-reliability, said Hanenberger. "Visits to a garage for repairs are not tolerated. They want a totally problem-free vehicle. But if you talk of quality being panel fit and gaps and paint finish, then U.S. customers are not tuned to that, and accept what those in other countries would regard as substandard quality. A major driver in the U.S. is cost. Generally, customers there judge a vehicle by its looks—they want to be excited by it—and they expect absolute reliability. Then, in three years, it is thrown away and another is bought. That is the majority view in the U.S. but for the 15% - 20% of customers who are more highly educated, the picture changes markedly. They are far more oriented to European and Japanese style vehicles because they offer quality PLUS durability." But then comes that difficult problem of cost.

Hanenberger feels that most of the U.S. auto industry and its products will always be different from all others in the world because North America is such a different society. But there are exceptions, and one, he believes, is Cadillac: "It will change further under the leadership of John Smith. Already it has good technology and design and is becoming the top-of-the-line car that the company said it would produce." Hanenberger hopes Cadillac could be one of the few cars to make that that very difficult transatlantic market journey successfully from west to east.

©2008 SAE International. All rights reserved.