Dallas, Texas 06/25/2015 (Financialstrend) – General Motors Company (NYSE:GM) is re-launching Chevrolet cruise compact in the market by making changes in its size and power in order to increase the market demand. As per the company’s expectations it will be more profitable than the existing model when it is re-launched in the early next year.
The Executive VP of General Motors Company (NYSE:GM) of global product development stated that the new model was engineered with the help of common engines and parts of other small cars which even includes European Opel Astra. By redesigning the cars using common parts the company is forecasting profit on the new cruze and Chevy Malibu family sedan would increase by $1500 to $2000 on each one.
General Motors Company (NYSE:GM) has taken the re-engineering decision on behalf of everybody’s initiative with the common goal to reduce the costs by using common engines, parts and vehicles platforms. This evolution of redesigning will be less costly compared to the expensive engineering works done previously in the local markets.
As part of the engineering work, the company is not only reduced the cost by using common parts however it is also making the car look bigger, more powerful and more safer.
The re-launched 2016 cruze which is unveiled on Wednesday in Detroit is 3 inches longer than the current version that is almost 184 inches and its standard 1.4 liter turbo engine increases the horse power to 153 by adding extra 15 horsepower. The company is all set to introduce the new cruze next year in more than 40 markets accompanied by Chevy Malibu family sedan which will be introduced in the later part of the year.
Chevy Cruze is an important car for General Motors Company (NYSE:GM) amounting to 70% of U.S sales and further the company is planning to work on sport utility vehicles.
General Motors Company (NYSE:GM) President, Alan Batey states that they have revamped the car in a way that it will be a hit across the globe. He even mentioned that last year the sales were very low due to less gasoline prices and the company sold 273,060 small cars, 10% more than 2013. The new cruze is 4 inches less than mid 1990’s Toyota Camry midsize sedan and it’s very efficient in highway driving.