01/04/08

2008 Chevy Malibu: Sold Out

Back in late November, I advised buyers in the mid-sized sedan segment that "the new 2008 Chevrolet Malibu is worth a look."

Good luck finding one to look at, especially if specific options packages are desired.

Malibu supply exceeds demand, and GM's sales expectations. Most dealers continue to pre-sell nearly every available car, with waiting lists growing.

GM has its first real hot product in years, and isn't ready to deliver in volume. Two plants are building Malibus.

This could be a calculated move by the automaker, product shortages boost the desirability, and margins, on the increasingly rare hot new product.

In the past Malibus were over-built and the surplus siphoned off by rental fleets.

GM successfully held down supply of the 2007 Buick Enclave, demonstrating what may be part of a larger under-production strategy.

But the competitive mid-sized sedan space is different from the low end sports roadster niche, where GM succeeded in creating a surge in demand for the seriously undersized Pontiac Solstice and Saturn Sky.

GM sold about 7,000 Malibus in November, and 12,172 in December.

So is the General making a mistake in under-building a bread and butter car?

IMHO, GM has taken a risk, a new product should be available when the marketing millions are spent. To catch Camry and Accord, and return buyers to the long neglected GM brands, Malibu must achieve wide acceptance over a period of years.

A short term artificial "scarcity" may not achieve marketing plan goals.

Sometime this spring Malibu supply is projected to roughly match demand.

Regrettably, I must advise readers to wait until the hype dies down to even consider the best new mainstream Detroit product in years.

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