BusinessWeek tests the Saturn Outlook

[SJ_GTI]

Link: http://www.businessweek.com/autos/content/nov2006/bw20061130_082606.htm

Saturn's Great New Outlook
Well-designed inside and out, the new Outlook crossover may be the best vehicle that seats seven that GM has ever made

Editor's Rating:  *****

The Good: Sound exterior design; first-class interior; superior packaging and details

The Bad: No sliding door for minivan traders

The Bottom Line: A benchmark in styling and packaging for a new segment

Upfront

The Saturn Outlook, General Motors (GM) hopes, will be one of four "trick" vehicles. The Outlook, along with the Buick Enclave, GMC Acadia, and a yet-to-be-named Chevrolet, are GM's full-sized crossover sport utility vehicles. Because they seat eight, GM is positioning the vehicles to replace two entire categories of vehicles?minivans and midsized sport utilities?for GM. That will be a neat trick.

The Outlook, priced from $27,255 and climbing to about $38,000 with entertainment and trim options, and going on sale at dealerships this month, is the first of the new SUV family to go on sale. The exterior design of the SUV is clean and inoffensive, if not sporty (and how many SUVs can claim sportiness?). The only really bad view is from the stern.

As I approached it in a parking lot, the Outlook appeared to have throw-pillows stuffed in its rear pockets. But that is a very minor niggle for an otherwise, dare I say it, sensational package. The design proportions from the side and quarter views are attractive and give the vehicle a confident stance. The 18-in. wheels are nicely pushed to the outer corners. The rocket-shaped headlamps are beautiful.

It's worth noting that GM sales and marketing chief Mark LaNeve says the company used the Honda Pilot as a benchmark for pricing and value. Indeed, the vehicles are priced side by side. But the Outlook is far and away a better package and performer than the Pilot. It's a bigger vehicle than the Honda (HMC), yet it gets better fuel economy courtesy of a new 3.6-liter V6 engine.

Saturn executives say they also looked at the Toyota (TM) Sequoia, Toyota Sienna, and Honda Odyssey for customers they hope to win over. That demonstrates how much GM feels it has spearheaded a new segment.

Behind the Wheel

The first thing that hits you about the Outlook when you open the door is a very classy, pristinely executed interior. The instrument panel looks as if it were fitted on Savile Row. The whole interior is clean and functional and full of the little niceties that change a customer's like to love. The cup-holders were perfectly set for small takeout coffee cups, as well as large ones. The dead pedal was engineered to comfortably accommodate a woman's high heel.

There is a latch on the inside of the rear hatch to easily tie the back-end closed if you have 12-ft. two by fours from Lowe's (LOW) hanging out. The lift-gate is electrically powered. The head restraints don't get in the way of the third-row seat folding flat. The center console has both a lighter outlet and an AC outlet for cell phones. The leather interior was top-grade and tailored for support.

No kidding. In my notebook, under "negatives," I didn't write anything. This can't be, I thought. Then I drove the Outlook. I was deeply suspicious of the transmission, which GM developed with Ford (F). Ford's version, in the new Ford Edge (see BusinessWeek.com, 10/18/06, "First Drive: Ford's Edge"), wandered and wheezed during my drive. In the Outlook, it was smooth and silky. It goes to show how important software engineering is in today's vehicles.

And unlike the Edge, the Outlook comes with a sport mode to allow easy manual shifting. I was so surprised by my lack of criticism for this vehicle that later I called Jim Hall of AutoPacific, an auto industry consulting firm, who was on the drive with me. "Am I nuts? Is it that good?" Hall, never afraid to criticize, said, "Yeah, it is.

" Hall agreed it may be the best product execution GM has ever released in segments that sell over 100,000 a year.

Driving the Outlook was every bit as pleasurable as the best of the midsized SUVs?the Lincoln Aviator (unsung for its excellent suspension tuning), Nissan (NSANY) Murano, and Toyota Highlander. (To be fair, I haven't yet driven the new Mazda CX-9, which seats seven or eight as well.)

Whether it was accelerating out of an on-ramp, passing on a highway, or back-roading, the 275-horsepower engine, which produces 251 foot-pounds of torque, did a perfect job. I still can't believe it. No complaints. The fuel economy is EPA-rated at 17 mpg in the city and 25 mpg on the highway, which is a few miles better on the highway than the Pilot. The caveat, though, is that Honda releases an all new Pilot in 2007, and I'd bet it will beat the new Outlook on fuel economy.

While other SUVs and crossovers have a third row of seats, the Outlook, along with the Buick and Acadia, has a fully functional third row that is not only easily accessed, but comfortable. At 5 foot 11 and more than 250 pounds, with a dysfunctionally arthritic knee, I easily got into the third row and sat reasonably comfortably. With a slick one-touch lever, the second seat folds forward and flat against the front seat to provide access room.

Buy It or Bag It?

The question for GM with these vehicles is whether they will attract a chunk of minivan buyers who need seating for seven/eight, as well as buyers of midsized SUVs such as Chevy Trailblazer and GMC Envoy, which GM is abandoning soon. My guess is that except for those people who actually need the towing capacity of the Trailblazer, or who demand V8 power, GM will get its share.

The towing crowd can always go for a Chevy Tahoe or Suburban. For minivan owners in search of a neater looking vehicle, the only drawback is that neither the Outlook, nor the Acadia or Enclave, has the sliding door, which comes in very handy when getting kids in and out in a parking lot. It's not an insignificant concern for parents.

The front-drive Outlook starts at $27,255, with the all-wheel-drive version at $29,555. The version with navigation costs $34,435. Add an entertainment system, and the price tag climbs to $36,000 with all-wheel drive and before other desirable options. But this is not an unreasonable price given competitive vehicles similarly equipped. The question is whether the Saturn brand will support that price.

Flanked in the Saturn showroom these days by the very impressive all-new Aura sedan and Sky Roadster (see BusinessWeek.com, 5/31/06, "Sky High"), the price doesn't seem like an impossible dream for Saturn.

Is the Outlook too good to be true? Not at all. But for people who are drifting around the minivan and full-size and midsized SUV categories looking for just the right package that suits their current lifestyle and kid-hauling needs, the Saturn Outlook is superior to its domestic and Asian competitors. And it's definitely the best thing that seats at least seven people that GM has ever made. Bring on Buick, GMC, and Chevy!

Hm, if this review is typical, GM could have a huge hit on its hands.

[ifcar]

I should hope so. It's going to be a pretty interesting market, as Mazda, Hyundai, and GM introduced very strong-looking vehicles almost simultaneously.

[GoCougs]

GM stands I think to have somewhat of an identity crisis in this seqment given the continued availability of the Equinox, Vue, TrailBlazer and Envoy. 

[SJ_GTI]

GM stands I think to have somewhat of an identity crisis in this seqment given the continued availability of the Equinox, Vue, TrailBlazer and Envoy.?

I don't think the Equinox and Vue are relevant here. In Honda terms, they are CRV competitors (in size and price). The Outlook is up against the Pilot.

The internal competition with the Envoy and Trailblazer is absolutely true though. But, these trucks are designed to take over the vast majority of the volume of those "tweener" SUV's. As far as I know GM is not planning any replacement for its body on frame mid-size SUV's. The Outlook is about the same size as the Tahoe on the outside, so in theory there could be some internal competition there as well, but I wonder if a person buying Tahoe or Yukon would more likely have a vehicle for intermittant tow duties.

[ifcar]

Equinox and Vue are much smaller and cheaper, and the TrailBlazer/Envoy can tow. Not an issue.

Look at the Toyota lineup: two compact/midsize SUVs (RAV4 and FJ), two clearly-midsize SUVs (Highlander and 4Runner), and two full-size SUVs (Sequoia and Land Cruiser). Nothing wrong with offering everything, I'd say it's better than the Honda "we build what we want not what you want" method.

[VetteZ06]

GM stands I think to have somewhat of an identity crisis in this seqment given the continued availability of the Equinox, Vue, TrailBlazer and Envoy.

Knee-jerk? The Vue and Equinox aren't even close to the size the Lambdas are, so there's no competition there.

Great review, though. GM seems to have done a really thorough job here. Let's hope it pays off.

Edit - SJ beat me to it.

[ifcar]

As did I.

[VetteZ06]

As did I.

[SJ_GTI]

As did I.

Yeah, but I beat you, didn't I? DIDN'T I?!?!?!? 

[ifcar]

I was busy making my post perfect.

[GoCougs]

Ever happy to be fodder for the masses. 

(I think that's the first emoticon I've ever used.)

[Raza]

Sounds good.  Not my cup of tea, but still.

[gasoline]

Here are some LAIAS pictures I found:

[Catman]

Really a handsome vehicle inside and out.  Makes me proud to read a review like that.  It's been so long since we've heard anything good about a Saturn.

[gasoline]

Weird from these angles. Lens?

[ifcar]

Here's a comparison (not mine, but the author is a member here) of the Outlook, 07 Pacifica, and Freestlye:

http://www.epinions.com/content_286658760324

[gasoline]

Here is what Edmunds' Ediitor had to say:

  I drove the 2007 Saturn Outlook recently, but I can't provide detailed analysis until December 10 (embargo). I'm also driving up to Central California today for a GMC Acadia event (not sure what the embargo will be on that one). It's worth noting that GM has released a string of new vehicles in the last few months, many of them truck/utility based models. You already know how the Silverado and Tahoe have been received, so you might be able to predict how the Acadia/Enclave/Outlook are going to come off. Not saying you should buy GM stock or anything...but it did just drop after the Kerkorian sell off, so it might be on the low-side of a cycle...

[SJ_GTI]

Interesting quote from edmunds. I assume that means they liked it as well.

I am skeptical about how well it will do, even if it really is the best thing in the segment. I just can't picture Toyota or Honda fans trading in for a Saturn.

[gasoline]

Interesting quote from edmunds. I assume that means they liked it as well.

I am skeptical about how well it will do, even if it really is the best thing in the segment. I just can't picture Toyota or Honda fans trading in for a Saturn.

A tiny few might. Saturn has to keep updating this thing to stay on top though. If it does well in the Consumer Reports thingy, it might soften  few stubborn people.
It's the 7 - 8 seat advantage that will count towards it initially though. Many people won't offer that for a while--and if the new Pilot is not attractive (which it could well be) some people may switch.

Toyota and Honda buyers are tough nuts though. They are not known for being open-minded.

[ifcar]

Toyota/Honda SUV buyers haven't had as much time to become loyal to a specific model, though. The Outlook is attacking Highlander/Pilot, which have only been on the market since 2001 and 2003, respectively. Most, or at least many, are still probably owned by the original buyer. It's the people who've owned Civics and Corollas and Accords and Camrys since for 15-20 years that are the hardest to get.

[gasoline]

Never looked at it that way...

[GoCougs]

IIRC, the Envoy and Trailblazer will be discontinued in the next few years. With these vehicles, GM at best can hope to hold onto these present buyers (of which there are quite a few, about 375,000/year).

[gasoline]

Here is  real real-life picture:

[gasoline]

[Raghavan]

The last pic that iffy posted makes it look huge, but otherwise, it looks great.

[sandertheshark]

From the outside this looks even better to me than the Enclave.

[ifcar]

The last pic that iffy posted makes it look huge, but otherwise, it looks great.

I never posted any pictures of it in this thread. And it is huge.

[Catman]

I was in a computer class today and the officer next to me was looking at Pathfinders on the Nissan site. I leaned over and told her to go to Saturn.com.  She says,"Saturn?".  She gets to Saturn's site and I tell her to click "Outlook".  She was like, "Hmmmm" while she was clicking around.  Next thing I know, she's filling in all her information to request more info.  She was really impressed by the vehicle.

[Catman]

I never posted any pictures of it in this thread. And it is huge.

Are you saying Rag is mistaken?

[Raghavan]

I never posted any pictures of it in this thread. And it is huge.

Oops, i confused you and gasoline because both your guys posts were right next to each other.