Auto Blog

Bob Lutz, GM Vice Chairman and Volt booster, told Edmunds AutoObserver today that the Volt is achieving its 40 mile all-electric target in initial on-road testing. “It is reliably meeting its objectives,” Lutz confirmed. “Even with a rough calibration, even with the wrong drive unit, the wrong body, etc. etc., it has been hitting its 40 miles on electric power.”

There was no word on which of the two battery suppliers’ products was installed in these first drives on GM’s proving grounds in Michigan. He did say the Volt’s Battery Management System was successfully keeping temperature rises to a minimum and maintaining even heat distribution across the cells.

Lutz ever more enthusiastically says the Volt will debut for sale in Chevy showrooms in November 2010. And he went out of his way to underscore Chairman Rick Wagoner’s interest and support for the Volt project.

[Source: Edmunds AutoObserver]

General Motors has been hit so hard by the ongoing American Axle strikes that it’s stopped production of the GMC Yukon, Denali, Sierra heavy-duty regular and extended cab, its commercial-duty pickup and variants of Chevrolet trucks and Tahoes. All the while, the General is still negotiating with the UAW over local contracts at some of its most important plants. To ease some of its supply problems, General Motors has reportedly offered as much as $200 million to American Axle for the funding of employee buyouts, early retirements and for the support of wage buy downs. The offer, however, is conditional on a quick resolution between American Axle and the UAW.

Spokesman Dan Flores says that GM hopes “the offer will help bridge the gap between American Axle and the UAW and that they will be able to reach a mutually satisfactory agreement in the near future.” Both the UAW and American Axle sound supportive of the investment; Bill Alford Jr., vice president and incoming president at UAW Local 235 says, “We’re happy that General Motors is finally coming to the table and realizing that they have a stake in American Axle’s future.” For GM’s sake and that of the striking workers, we hope the feuding companies find an amicable solution soon, though it seems unfortunate that GM, which is not exactly posting record profits itself, should need to cough up funding to make it happen.

[Source: The Detroit Free Press]

General Motors has informed its dealers that production of some of its 2008 full-size trucks and SUVs has been halted due to the ongoing American Axle strike. The affected vehicles include the GMC Yukon, Denali, Sierra heavy-duty regular and extended cab, its commercial-duty pickup and variants of Chevrolet trucks and Tahoes. According to the General, a basic lack of parts is the reason for the stoppage and dealer orders for the week of May 8th and May 15th have been cancelled. While a lack of production is bad news for any automaker, we can’t help but think that it couldn’t have come at a better time for the General as SUV and truck sales are down overall.

[Source: Automotive News – sub. req’d]

We gave a pretty detailed write-up last summer on GM’s new light-duty diesel V-8 that will premiere in 2009. The new engine was specifically designed to fit within the same package dimensions as the long-running small-block V-8. As such, the diesel can potentially be installed in any GM vehicle that currently carries the V-8. GM has announced that the new 4.5L engine will have output of 310hp and 520lb-ft of torque. The Duramax 4500 will also provided a 25 percent reduction in fuel consumption compared to the similarly powerful gasoline engines. That puts it on a par (when comparing combined city/highway numbers) with the two-mode hybrid system when it debuts in the Chevy Silverado and GMC Sierra pickups next year.

When the engine debuts for the 2010 model year it will be the first GM diesel to use selective catalytic reduction (SCR) to reduce NOx emissions. SCR is also known as urea injection. Vehicles with this engine will meet Tier 2 Bin 5 standards and be fifty-state legal. In order to fit the dual overhead engine in the space of the cam-in-block small-block, GM engineers reduced the angle of the block and reversed the intake and exhaust flow through the cylinder heads. The intake valves are now on the outside of the heads and the manifold feeds air in from the top. The exhaust manifolds are now in the valley of the block along with the turbocharger. Previously, GM has also indicated that this engine would also go into the Hummer H2 which would do a lot to improve that vehicle’s mileage.

[Source: General Motors]

PRESS RELEASE

GM READYING V-8 DIESEL FOR 2010 MODEL YEAR NORTH AMERICAN LIGHT DUTY TRUCKS

• Scheduled for GM pickup trucks under 8,500 pounds Gross Vehicle Weight
• Low emissions, high performance and excellent fuel economy

PONTIAC, Mich. - General Motors Corp.’s revolutionary new 4.5L V-8 Duramax turbo-diesel, which makes its debut in Chevrolet Silverado and GMC Sierra light duty trucks in the 2010 model year, is compact, powerful and fuel-efficient. The engine also is lighter, an important consideration in the competitive light truck market, because it was designed with more than 70 fewer parts.

The new dual-overhead cam, four-valve V-8 diesel engine boasts a number of innovative design approaches that have enabled its compact size and mass, including integral aluminum cylinder head exhaust manifolds, integral cam cover intake manifolds and a narrow V-angle block. The new V-8’s compact size enables it to fit within the same space of a small-block V-8 gasoline engine and offers GM the flexibility to introduce it in a wide variety of vehicles to meet market demand.

The new 4.5L V-8 diesel is expected to deliver more than 310 horsepower (231 kW) and 520 lb-ft of torque (705 Nm), while delivering a 25-percent engine fuel efficiency improvement versus comparable gasoline engines.

“This premium diesel engine is expected to deliver the power, torque and refinement our customers expect,” said Tom Stephens, executive vice president, GM Global Powertrain and Global Quality.

The new V-8 diesel will be GM’s first engine to use a selective catalytic reduction (SCR) NOx after-treatment system with a diesel particulate filter to help achieve Tier 2 Bin 5 and LEV 2 emissions, making it compliant in all 50 states. SCR was chosen for its proven NOx reduction capability and durability, and high efficiency while operating in optimal diesel combustion modes, making it a very attractive system to achieve high fuel economy.

The environmental benefits of the new engine include a 13-percent reduction in CO2 emissions and at least a 90-percent reduction in particulates and NOx compared to many diesel vehicles today.

Technical highlights

Robust and innovative, the new 4.5L diesel V-8’s technical details include lightweight aluminum cylinder heads with integrated manifolding; a variable-vane turbocharger with intercooling; a compacted graphite iron (CGI) cylinder block for a stronger and lighter base engine (compared to lower-strength aluminum or heavier grey cast iron); and a fracture-split main bearing cap system. GM has applied for patents on a number of these features and expects to have several patents granted before the engine launches.

Compared to typical production diesel engines, GM’s new 4.5L V-8 turbo-diesel innovatively reverses the flow of air and exhaust gases entering and exiting the cylinder heads. Air enters the engine through ports in the top portion of each cylinder head. Exhaust gases exit inward between the cylinder heads and directly into a turbocharger.

“By using integral cylinder head exhaust manifolds, integral cam cover intake manifolds and a narrow cylinder block, designers saved space and reduced the engine’s weight. And because the engine makes more efficient use of heat, fuel economy and performance are enhanced, and noise and emissions are reduced,” said Gary Arvan, chief engineer for the 4.5L V-8 diesel.

An electronically controlled, 29,000-psi (2,000 bar) common-rail fuel system is also used on the engine. It has the ability to inject fuel five times per combustion event, reducing noise and emissions while enhancing fuel economy.

“This new V-8 diesel meets the toughest emissions requirements in North America, and it also delivers an effortless performance feel because of its high torque across the speed range,” said Charlie Freese, executive director of GM Powertrain Diesel Engineering. “It is also significantly quieter than many other diesels on the road today, with noise and vibration performance approaching gasoline V-8 levels.”

GM’s global diesel offerings

GM (Opel, Saab, Vauxhall and GMDAT) currently offers 16 diesel engine variants in 45 vehicle lines around the world. GM sells more than one million diesel engines annually, with products that offer a range of choices, from the 1.3L four-cylinder diesel engine found in the Opel Agila and Corsa, to the 6.6L V-8 Duramax diesel offered in full-size vans, heavy-duty pickups and medium-duty trucks in the United States.

GM introduced the Duramax diesel 6.6L V-8 in North America in the 2001 model year. Since then, customer enthusiasm for it has helped GM’s heavy-duty pickup market share jump nearly tenfold in the seven years the Duramax has been offered.

The battle of the diesel-powered half-tons is about to begin, and today General Motors revealed more details on its entrant: the 4.5L Duramax turbo-diesel V8. Thanks to a narrow-angle V block, the 4.5L turbo diesel will fit in the same space as the General’s small-block V8, which does give us hope for additional applications beyond just its half-ton trucks. Large SUVs are surely going to get the engine as an option eventually, but maybe GM can find a passenger car or two down the line that would benefit from the tons of torque this engine will produce. GM says the 4.5L turbo-diesel will produce 310 horsepower and 520 pound-feet of torque, while bumping fuel efficiency by 25%. In order to help it meet Bin 5 and LEV 2 emissions standards as well as be 50-state legal, the engine will feature both a diesel particular filter and NOx after-treatment system that uses urea to knock out those pesky nitrogen-based particles. Another engineering coup for the 4.5L turbo-diesel is that GM has reduced its parts count thanks to a design that includes integrated aluminum cylinder head exhaust manifolds and an integral cam cover intake manifold. You’ll be able to buy the new diesel in model year 2010 Chevy Silverados and GMC Sierra half-ton pickups, no doubt for a sizable premium over their gas-powered counterparts.

[Source: GM]

PRESS RELEASE

GM READYING V-8 DIESEL FOR 2010 MODEL YEAR NORTH AMERICAN LIGHT DUTY TRUCKS

• Scheduled for GM pickup trucks under 8,500 pounds Gross Vehicle Weight
• Low emissions, high performance and excellent fuel economy

PONTIAC, Mich. - General Motors Corp.’s revolutionary new 4.5L V-8 Duramax turbo-diesel, which makes its debut in Chevrolet Silverado and GMC Sierra light duty trucks in the 2010 model year, is compact, powerful and fuel-efficient. The engine also is lighter, an important consideration in the competitive light truck market, because it was designed with more than 70 fewer parts.

The new dual-overhead cam, four-valve V-8 diesel engine boasts a number of innovative design approaches that have enabled its compact size and mass, including integral aluminum cylinder head exhaust manifolds, integral cam cover intake manifolds and a narrow V-angle block. The new V-8’s compact size enables it to fit within the same space of a small-block V-8 gasoline engine and offers GM the flexibility to introduce it in a wide variety of vehicles to meet market demand.

The new 4.5L V-8 diesel is expected to deliver more than 310 horsepower (231 kW) and 520 lb-ft of torque (705 Nm), while delivering a 25-percent engine fuel efficiency improvement versus comparable gasoline engines.

“This premium diesel engine is expected to deliver the power, torque and refinement our customers expect,” said Tom Stephens, executive vice president, GM Global Powertrain and Global Quality.

The new V-8 diesel will be GM’s first engine to use a selective catalytic reduction (SCR) NOx after-treatment system with a diesel particulate filter to help achieve Tier 2 Bin 5 and LEV 2 emissions, making it compliant in all 50 states. SCR was chosen for its proven NOx reduction capability and durability, and high efficiency while operating in optimal diesel combustion modes, making it a very attractive system to achieve high fuel economy.

The environmental benefits of the new engine include a 13-percent reduction in CO2 emissions and at least a 90-percent reduction in particulates and NOx compared to many diesel vehicles today.

Technical highlights

Robust and innovative, the new 4.5L diesel V-8’s technical details include lightweight aluminum cylinder heads with integrated manifolding; a variable-vane turbocharger with intercooling; a compacted graphite iron (CGI) cylinder block for a stronger and lighter base engine (compared to lower-strength aluminum or heavier grey cast iron); and a fracture-split main bearing cap system. GM has applied for patents on a number of these features and expects to have several patents granted before the engine launches.

Compared to typical production diesel engines, GM’s new 4.5L V-8 turbo-diesel innovatively reverses the flow of air and exhaust gases entering and exiting the cylinder heads. Air enters the engine through ports in the top portion of each cylinder head. Exhaust gases exit inward between the cylinder heads and directly into a turbocharger.

“By using integral cylinder head exhaust manifolds, integral cam cover intake manifolds and a narrow cylinder block, designers saved space and reduced the engine’s weight. And because the engine makes more efficient use of heat, fuel economy and performance are enhanced, and noise and emissions are reduced,” said Gary Arvan, chief engineer for the 4.5L V-8 diesel.

An electronically controlled, 29,000-psi (2,000 bar) common-rail fuel system is also used on the engine. It has the ability to inject fuel five times per combustion event, reducing noise and emissions while enhancing fuel economy.

“This new V-8 diesel meets the toughest emissions requirements in North America, and it also delivers an effortless performance feel because of its high torque across the speed range,” said Charlie Freese, executive director of GM Powertrain Diesel Engineering. “It is also significantly quieter than many other diesels on the road today, with noise and vibration performance approaching gasoline V-8 levels.”

GM’s global diesel offerings

GM (Opel, Saab, Vauxhall and GMDAT) currently offers 16 diesel engine variants in 45 vehicle lines around the world. GM sells more than one million diesel engines annually, with products that offer a range of choices, from the 1.3L four-cylinder diesel engine found in the Opel Agila and Corsa, to the 6.6L V-8 Duramax diesel offered in full-size vans, heavy-duty pickups and medium-duty trucks in the United States.

GM introduced the Duramax diesel 6.6L V-8 in North America in the 2001 model year. Since then, customer enthusiasm for it has helped GM’s heavy-duty pickup market share jump nearly tenfold in the seven years the Duramax has been offered.

General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the annual global industry sales leader for 76 years. Founded in 1908, GM today employs about 266,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2007, nearly 9.4 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

General Motors announced today that it recorded a net loss of $3.25 billion during the first quarter of 2008, but it looks worse than it is thanks to a $1.45 billion hit from its 49% stake in floundering GMAC. The two-month long American Axle strike also cost GM about $800 million, while further support of bankrupt supplier Delphi’s restructuring took $731 million from the corporate coffers. These “headline numbers” don’t look good, but GM’s performance in the area of actually selling cars wasn’t as bad as analysts expected, and the automaker’s stock actually rose after these earnings were announced.

GM continued to do well in the business of selling cars in regions like Europe, Asia and Latin America, but the North American market continued to underperform. In North America, GM lost $812 million on revenue from sales of $24.5 billion, compared to a loss of $208 million last year on $28.1 billion of revenue. Aside from selling fewer vehicles, GM also lost 100,000 units of production thanks to the American Axle strike, which helped its market share slip from 22.5% last year to 21.7% in Q1 2008. Clearly the news isn’t as good as it was, say, for Ford, but GM is virtually the only automaker being affected by the American Axle strike, and has a number of labor- and supplier-related issues to sort out before it can begin building a steady stream of its most popular models in North America.

[Source: GM, Automotive News - sub. req’d]

PRESS RELEASE

GM Reports Preliminary First Quarter 2008 Financial Results

• First quarter revenue of $42.7 billion
• Positive adjusted automotive earnings before tax, with improvement of over $160 million
• Positive reported automotive earnings before tax, down by $118 million
• Adjusted net loss of $350 million, reported net loss of $3.3 billion
• Continued strong results in emerging markets
• Liquidity position of $23.9 billion

DETROIT – General Motors Corp. (NYSE: GM) today announced financial results for the first quarter of 2008, marked by improved adjusted automotive operating performance, rapid growth in emerging markets, continued cost performance in GM North America (GMNA) operations and liquidity of nearly $24 billion, despite the impact of the American Axle strike on North American operations and weakness in the U.S. auto industry.

“We continue to leverage our global product portfolio to take advantage of tremendous growth in key emerging markets, while at the same time taking the appropriate actions to deal with the challenging economic conditions in the U.S.,” said GM Chairman and Chief Executive Officer, Rick Wagoner.

Reflecting several special items noted below, GM reported a net loss of $3.3 billion, or $5.74 per share in the first quarter of 2008, compared with a net loss from continuing operations of $42 million, or $.07 per diluted share, in the year-ago quarter.

Adjusted automotive earnings before taxes were $392 million, up $161 million despite the significant impact of the American Axle strike and weak U.S. auto industry (reported earnings declined $118 million). These positive results were driven by strong combined earnings before taxes of $1 billion in GM Latin America, Africa and Middle East (GMLAAM), GM Asia Pacific (GMAP) and GM Europe (GME), which more than offset a loss at GMNA.

Excluding special items, GM posted an adjusted net loss of $350 million, or $.62 per diluted share in the first quarter of 2008, reflecting losses at GMAC and tax expenses. These results compare to an adjusted net loss from continuing operations of $10 million, or $0.01 per diluted share in the first quarter of 2007.

The reported results for the first quarter of 2008 include unfavorable special items totaling $2.9 billion. The charges include $1.45 billion to record a non-cash partial impairment of our equity investment in GMAC. Based on current market pricing, GM concluded that the estimated fair value of the common and preferred equity interests it holds in GMAC were approximately $1.45 billion less than GM’s carrying value.

GM also took a non-cash charge of $731 million to increase GM’s liability for estimated net costs associated with GM’s support of Delphi’s bankruptcy and restructuring efforts. This charge primarily results from updated estimates reflecting uncertainty around the nature, value and timing of GM’s recoveries. In addition, GM recorded $394 million in non-cash tax-related valuation allowances related to deferred tax assets in Europe, and $324 million in charges related to previously-announced restructuring actions in North America and Europe. Details on all of the special items are included in the “Highlights” section of this news release.

GM’s total revenue for the first quarter of 2008 was $42.7 billion, down slightly from $43.4 billion in the year-ago quarter primarily due to lower North America automotive and financial services and insurance revenues. Automotive revenues outside of North America were up over 20 percent, with strong growth in China, Brazil, Russia and India.

As reported in the fourth quarter of 2007, and reflected in the remainder of this release, GM now reports its automotive operations and regional results on an earnings-before-tax basis, with taxes reported on a total corporate basis.

GM Automotive Operations

Adjusted profits from GM’s global automotive operations improved, with first quarter 2008 earnings before tax of $392 million on an adjusted basis (reported earnings before tax of $68 million), compared to $231 million in the year-ago period (reported earnings before tax of $186 million).

GM sold 2.25 million vehicles in the first quarter of 2008, down less than one percent from 2.27 million units in the first quarter 2007, with a record 64 percent of sales outside of the United States. Unit sales outside GMNA were up 8 percent compared with the same quarter last year. Robust sales in the first quarter in GM’s GMLAAM and GMAP regions, and improved sales in the GME region helped offset a 10 percent unit decline in GMNA.

GMNA

GMNA revenue for the first quarter 2008 was $24.5 billion, compared to $28.1 billion in the year-ago period. The decline in GMNA first quarter revenue was significantly impacted by the lost production due to the American Axle strike. Other factors include a softer U.S. market and planned actions to maintain lean inventories. With the industry shift toward more fuel-efficient vehicles, GM’s most recently launched passenger cars and crossovers, including the Cadillac CTS, GMC Acadia, Buick Enclave and the all-new Chevrolet Malibu continue to perform well in the marketplace.

The decline in GMNA first quarter earnings was more than accounted for by the loss of 100,000 production units resulting from the American Axle strike, which had an estimated impact to earnings of $0.8 billion. Other factors included lower volumes resulting from a softer U.S. market and lower market share, as well as shifts in product mix. Partially offsetting the declines were favorable material and structural cost performance and commodity hedging gains and foreign exchange.

GME

GME Revenue was up 17 percent and adjusted earnings before tax improved by $137 million. GME’s improved earnings for the first quarter were driven by improved material cost performance, commodity hedging gains and reduced warranty costs, which were partially offset by negative foreign exchange and unfavorable country mix. GME had record first-quarter sales volumes of 572,000 units.

GMLAAM

Adjusted earnings before tax in the GMLAAM region more than doubled in the first quarter of 2008, driven by continued strong market growth and gains in GM market share in the region. GMLAAM revenue was up over 33 percent and volumes were up 20 percent, setting new first-quarter records for both unit sales and revenue. In addition, Argentina, Egypt and North Africa each set new quarterly sales records.

GMAP

GMAP adjusted earnings before tax increased by 49 percent, driven by strong volume and improvements in material cost performance, which were partially offset by mix and pricing deterioration and increased structural costs incurred to support growth. Revenue and earnings before tax improved significantly due to the overall volume gains, although market share was down slightly primarily due to declines in China, Australia and Korea.

GMAC

On a standalone basis, GMAC Financial Services reported a net loss of $589 million for the first quarter 2008, primarily due to significant declines in the international mortgage operation of Residential Capital, LLC (ResCap). The company’s global automotive and insurance businesses posted profits. GM reported an adjusted loss before taxes of $276 million for the quarter attributable to GMAC, as a result of its 49 percent equity interest and preferred dividends. While continued volatility in the capital and credit markets put pressure on first quarter results, GMAC continues to take actions to reduce risk, streamline its cost structure and preserve liquidity in an effort to protect franchise value.

Cash and Liquidity

Cash, marketable securities, and readily-available assets of the Voluntary Employees’ Beneficiary Association (VEBA) trust totaled $23.9 billion on March 31, 2008, down from $24.7 billion on March 31, 2007. The change in liquidity reflects adjusted negative operating cash flow of $3.6 billion in the first quarter 2008. The decrease was driven largely by lower production in GMNA, including the impact of the American Axle strike. Including undrawn, committed U.S. credit facilities of approximately $7 billion, GM has access to more than $30 billion in liquidity.

Looking Forward

In light of the current state of the U.S. economy and automotive industry, GM has revised its 2008 U.S. total industry seasonally adjusted annual rate (SAAR) outlook to the mid to high 15 million unit range, down from the low 16 million unit range. As a result of the anticipated softer automotive industry, GM announced earlier this week that it will eliminate a shift of production at four assembly plants: Janesville, WI; Pontiac and Flint, MI and Oshawa, Ont.

“We remain focused on taking the actions necessary to assure GM’s long-term success – product excellence, leadership in advanced propulsion technology, growth in emerging markets, and accelerating the restructuring of our U.S. business to achieve sustainable profitability,” said Wagoner.

Results for the first quarter of 2008 are preliminary and may be revised prior to the filing of GM’s first quarter report on Form 10-Q in May.

The continuing ramping up of fuel prices and ramping down of the real estate market has taken a toll on sales of big trucks. GM has announced their response with plans to cut production shifts at four factories that build big trucks. With gas at and beyond $4 a gallon and credit getting tighter, people who in recent years have bought or leased full-size SUVs for personal transportation are increasingly looking elsewhere. And with the market for new houses in free-fall in much of the country, contractors aren’t buying new pickup trucks. All that adds up to too much production. For a change GM is being proactive and cutting production before they have to start stacking trucks in parking lots around the country. Starting after the summer shutdown in July, one shift of production will be eliminated at the Flint and Pontiac MI plants and the Janesville, WI plant. In September, one shift will be eliminated at the Oshawa Ont. factory. The Oshawa factory will begin producing the Two-Mode hybrid version of the Silverado and Sierra pickups this fall, but it seems unlikely that will be enough to revive the extra production.

[Source: General Motors]

GM to Reduce Full-Size Truck Production

Move to bring production in line with market demand
Company to explore options to expand car production

DETROIT – GM announced today that it is eliminating one shift of production at its full-size pickup truck assembly plants in Pontiac, Mich.; Flint, Mich.; and Oshawa, Ontario; and its full-size SUV assembly plant in Janesville, Wis. The decisions were made to bring production capacity more in line with market demand.

Under this plan, approximately 88,000 units of full-size pickup and 50,000 units of full-size SUV production will be removed from GM’s North American production capacity for the remainder of the 2008 calendar year.

Based on current plans, the shift reductions will be effective on the following dates:

• Flint Assembly (Heavy Duty Chevrolet Silverado and GMC Sierra) – July 14
• Janesville (Chevrolet Tahoe and Suburban, GMC Yukon, Yukon XL) – July 14
• Pontiac Assembly (Chevrolet Silverado, GMC Sierra) – July 14
• Oshawa Truck (Chevrolet Silverado and GMC Sierra) – September 8

The full-size pickup truck and full-size SUV segments have softened for the entire industry – down 15 and 26 percent, respectively, through the first quarter of 2008. Nonetheless, GM remains the segment leader in both instances, with nearly 40 percent share of full-size trucks and more than 63 percent share in the full-size SUV market.

“With rising fuel prices, a softening economy, and a downward trend on current and future market demand for full-size trucks, a significant adjustment was needed to align our production with market realities,” said Troy Clarke, president GM North America. “This is a difficult move, but we remain committed to retaining and growing our leadership position in the full-size truck market.”

Clarke noted that with the market shifting toward cars and crossovers, GM is seeing strong sales of the new Chevrolet Malibu, Cadillac CTS, Chevrolet Cobalt, Pontiac G6, Chevrolet Impala, Buick Enclave and GMC Acadia. He added that the company is continuing to explore options to increase car and crossover production, but there are no changes to car production at this time.

The full-size truck production cuts will result in lower staffing requirements at all four plants, and those details will be worked out over the next several weeks with the UAW and CAW.

Word just came in from General Motors that the automaker will be reducing shifts at four different plants that produce its full-size trucks and SUVs in an effort to bring production “in line with market demand”. The output slowdown will begin on July 14th at GM’s Flint, Janesville and Pontiac assembly plants, which produce the Chevy Heavy-Duty Silverado, Tahoe, Suburban, Silverado and GMC Yukon, Yukon XL and Sierra. The Oshawa truck plant will also be affected starting Sept. 8th. All told, the shift reductions will nix 80,000 full-size pickups and 50,000 full-size SUVs from GM’s North American production capacity.

According to GM, both vehicles have lost ground in the market across the industry, with sales of full-size pickups dropping 15-percent and SUVs down 26-percent for the first quarter of 2008. This isn’t surprising considering the cost of fuel right now and the subsequent reduced demand for larger vehicles. GM didn’t provide specifics about how this would affect workers, only saying that it will “result in lower staffing requirements at all four plants,” and that the details “would be worked out over the next several weeks with the UAW and CAW.”

Naturally, GM felt the need to brighten up the lackluster announcement by highlighting that car and CUV sales are up. However, it hasn’t made a decision to boost output of either type of vehicle in lieu of said increased demand. Check out GM’s full press release after the jump.

[Source: GM, Photo by Scott Olson/Getty]

PRESS RELEASE

GM to Reduce Full-Size Truck Production

Move to bring production in line with market demand
Company to explore options to expand car production

DETROIT – GM announced today that it is eliminating one shift of production at its full-size pickup truck assembly plants in Pontiac, Mich.; Flint, Mich.; and Oshawa, Ontario; and its full-size SUV assembly plant in Janesville, Wis. The decisions were made to bring production capacity more in line with market demand.

Under this plan, approximately 88,000 units of full-size pickup and 50,000 units of full-size SUV production will be removed from GM’s North American production capacity for the remainder of the 2008 calendar year.

Based on current plans, the shift reductions will be effective on the following dates:

* Flint Assembly (Heavy Duty Chevrolet Silverado and GMC Sierra) – July 14
* Janesville (Chevrolet Tahoe and Suburban, GMC Yukon, Yukon XL) – July 14
* Pontiac Assembly (Chevrolet Silverado, GMC Sierra) – July 14
* Oshawa Truck (Chevrolet Silverado and GMC Sierra) – September 8

The full-size pickup truck and full-size SUV segments have softened for the entire industry – down 15 and 26 percent, respectively, through the first quarter of 2008. Nonetheless, GM remains the segment leader in both instances, with nearly 40 percent share of full-size trucks and more than 63 percent share in the full-size SUV market.

“With rising fuel prices, a softening economy, and a downward trend on current and future market demand for full-size trucks, a significant adjustment was needed to align our production with market realities,” said Troy Clarke, president GM North America. “This is a difficult move, but we remain committed to retaining and growing our leadership position in the full-size truck market.”

Clarke noted that with the market shifting toward cars and crossovers, GM is seeing strong sales of the new Chevrolet Malibu, Cadillac CTS, Chevrolet Cobalt, Pontiac G6, Chevrolet Impala, Buick Enclave and GMC Acadia. He added that the company is continuing to explore options to increase car and crossover production, but there are no changes to car production at this time.

The full-size truck production cuts will result in lower staffing requirements at all four plants, and those details will be worked out over the next several weeks with the UAW and CAW.

GM is still dancing with the UAW over contract issues, now its doing it with local plants regarding items that weren’t in the national agreement. However, The General has managed to wring two more days to negotiate before workers at its Fairfax assembly plant in Kansas City, KS, walk out. The 2,600 workers of UAW Local 31 churn out 3,100 Malibus every week.

Local contracts — as opposed to the national agreement — concern work-rule, seniority and other non-economic issues. The UAW Local says that GM isn’t following the blueprint of the national agreement and is pushing for too much. GM says it is negotiating in good faith.

And Fairfax isn’t the only plant affected. Strikes and idling due to rejected contracts have taken place at GM plants in Parma, Ohio, Lansing, Michigan, and Detroit-Hamtramck. Those interruptions have halted production of the Buick Lucerne and Enclave, Cadillac CTS, Saturn Outlook, and GMC Acadia. The Hamtramck plant is calling workers back, which will get the Lucerne and CTS in production again, but now the Malibu is on the block. GM has a 37-day supply of the hot commodity, and it also has another plant that builds Malibus. If GM and UAW Local 31 can’t come to an agreement, Malibu production at the Fairfax plant will cease tomorrow.

[Source: Automotive News - Sub. Req.]

Click above to view video after the jump

For this blogger, ever since the movie Stripes, there have been recurring automotive fantasies that began with “Wouldn’t it be cool if there was a remote-controlled gun turret on this car?” The folks at Dillon Aero, however, were probably watching the evening news as opposed to cinema when they came up with the Dillon Aero SUV: a government-issue GMC Yukon XL equipped with a Dillon Gatling gun.

The vehicle looks like every other typical VIP G-man SUV, except instead of a leather bench in the back, there is a mounted mini gun and a gunner. When the kind of threat is detected that needs a dose of 30,000 rounds of hot lead every minute, the gunner pops up through the roof. The split hatch forms side protection for the gunner, who can swivel 360 degrees while firing. And then, well, the target is toast as bullet casings rain down on the professional grade SUV like in a John Woo movie. Now if Dillon could just work on rocket launchers… Thanks for the tip, Travis!

[Source: You Tube]