GM announces GMC Acadia Denali for 2011

DETROIT – Today GMC unveiled the 2011 Acadia Denali in Detroit. The first Denali was launched in 1999 on the Yukon brand and helped define the luxury SUV segment. With nearly half of all Yukon sales being Denali models, expanding the Denali line to include the Acadia was a logical extension. Acadia Denali will provide GMC customers with all the amenities the Denali is known for in a fuel-efficient crossover.

“The GMC Denali models have come to stand for luxury and exclusivity, and that’s just what customers will get in the new Acadia Denali,” said Lisa Hutchinson, GMC product marketing director. “The decision to develop an Acadia Denali was made quickly within the new GM in response to customer and dealer demand for a Denali version ever since the launch and success of the Acadia.”

The Acadia launched in 2007 as the first crossover from GMC, with segment-leading fuel economy and innovative features. An exclusive SmartSlide System allows easy access to an adult-sized third row with available seven- or eight- passenger seating configurations. Fold-flat second- and third-row seats allow flexible passenger and cargo configurations of the best-in-class interior space. Acadia’s refined styling, impressive fuel efficiency, and confidence-inspiring safety features made it an immediate success and ideal platform to build upon for a Denali model.

The 2011 Acadia Denali goes on sale in the third quarter of 2010. It is available in both front-wheel drive and all-wheel drive models, as well as seven- and eight-passenger configurations. The standard 3.6L direct injected V-6 contributes to an EPA highway rating of 24 mpg with FWD models.

The Acadia Denali will stand out with its signature Denali design cues highlighted by the mono-color exterior and chrome honeycomb grille, a feature on all GMC Denali models. It also wears a number of specific exterior design cues, including:

• Unique lower front and rear fascias
• High-intensity discharge headlamps
• Body-color lower cladding and rocker moldings
• Body-color rear fascia and fender flares
• Unique body-side moldings with chrome accents and Denali badges
• Dual chrome exhaust tips

Further distinction comes with 20-inch, two-tone chrome-clad wheels. The six-spoke wheels feature black chrome spoke inserts set against bright chrome.

The Acadia Denali is offered in five exterior colors: Quicksilver Metallic, Summit White, Carbon Black, Red Jewel Tintcoat and White Diamond Tricoat.

Luxury amenities

Acadia Denali delivers all the luxury and refinement that are hallmarks of the Denali line. It includes a number of exclusive design, comfort and convenience features including:

• Premium acoustics - laminated glass, triple door seals, and liquid applied sound deadeners
• Perforated leather seats with matching leather door panel trim
• Heated and cooled driver and passenger seats
• Leather-wrapped steering wheel with mahogany wood inserts
• Complementary wood grain finish on the instrument panel and center stack
• Enhanced accent lighting in the footwells
• Chrome, lighted sill plates with the Denali logo
• Dual SkyScape sunroof system, with sliding front sunroof and fixed rear section
• Head-up display (HUD)

Additional content includes:

• Tri-zone automatic climate control
• Navigation system including XM NavTraffic (available)
• Bluetooth connectivity
• OnStar
• Rear-seat DVD entertainment system, with roof-mounted flip-down screen (available)
• Premium audio system with USB port and Bose 10-speaker sound system
• XM Satellite Radio
• Rearview camera system
• Eight-way power-adjustable driver’s seat with memory
• Remote vehicle start

GMC capability

Acadia Denali is powered by a 3.6L direct injection V-6 engine with VVT that optimizes performance and fuel economy, while also reducing emissions – including a 25-percent reduction in cold-start emissions. Engine performance is enhanced by the advanced six-speed automatic transmission. The maximum towing capacity is a class-leading 5,200 pounds (2,364 kg).

A long, 118.9-inch (3,021 mm) wheelbase and wide 67.28-inch (1,709 mm) front/rear tracks give it a lower center of gravity and enable smooth, stable ride and handling for driving comfort. Independent front and rear suspensions enhance smoothness and deliver a more responsive driving experience. The front suspension features a MacPherson strut design, with a direct-acting stabilizer bar and aluminum knuckles, while the rear suspension uses a compact, state-of-the-art linked “H” design. Isolated mounting points help reduce noise and vibration.

The suspension is tuned specifically for the Acadia Denali’s 20-inch wheels and the available AWD system enhances dry-road handling and provides increased traction on wet, snow and ice-covered roads. Four-wheel disc brakes with ABS are standard, as are the following features:

• StabiliTrak electronic stability control system with rollover mitigation technology
• Traction control system
• Tire pressure monitoring system

Acadia Denali is covered by GM’s five-year/100,000-mile Powertrain Warranty and three-year/36,000-mile Bumper-to-Bumper warranty – the best coverage in America.

About GMC

GMC is one of the industry's healthiest brands and is evolving to include more fuel-efficient trucks and crossovers. The all-new GMC Terrain is a smaller SUV that offers outstanding fuel economy along with the capability, engineering excellence and refinement that have defined GMC for more than a century. Complementing the Terrain is the Acadia eight-passenger crossover, Yukon and Yukon XL and Sierra pickups. Today GMC is the only manufacturer offering three full-size hybrid models. Details on all GMC models are available at www.gmc.com.

Test Drive: 2009 Dodge Challenger

This Challenger Fails to Meet the Challenge

Detroit’s mid-decade desire to return to the glory days of muscle cars resulted in well-received concepts from the each of the “Big 3” automakers. At Chrysler’s Dodge division, that meant the return of the Challenger.

I was excited about this car when it appeared in concept form at the 2006 North American International Auto Show in Detroit. Dodge designers had clearly recaptured the muscular magnificence of Challenger’s past, creating a look that had me salivating at the thought of one day driving one. It took a while, but that day finally came and I found myself less than impressed.

Having driven a Chrysler 300 SRT-8 with the 6.1 liter HEMI V-8 engine-- loving its quick acceleration and taut, muscular feel-- I was extremely disappointed to find that the Challenger R/T, equipped with the 5.7 liter HEMI V-8, produced little-- if any-- feeling of muscular power. Everything about the driving experience—seating, steering, acceleration—felt loose. It was not what I expected. Yes, the Challenger R/T had power, but it felt more like big touring sedan power than muscle coupe power. I felt like I was driving a boat, not a sports car.

Maybe I need the perspective of having driven a late 70’s model Challenger, like the “General Lee,” featured in the television series “The Dukes of Hazzard.”

My guess is the Challenger SRT-8 is tight. My experience with the challenger R/T was not. Sales seem to bear this out. The Challenger lags behind the Chevrolet Camaro and Ford Mustang.

Features

Standard features on the 2009 Dodge Challenger R/T test model included remote keyless entry, day/night rear view mirror, cruise control and AM/FM/CD/MP3 radio with 4-speaker sound. SIRIUS Satellite Radio was the only added option.

Summary

As 21st Century muscle cars go, the 2009 Dodge Challenger R/T has the look, but doesn’t completely deliver on performance. I expected a lot more.

GM Announces Leadership Changes

DETROIT (GM)– To improve accountability and responsibility for market performance in North America and around the world, several key leadership changes were announced today by GM Chairman and CEO, Ed Whitacre.

“I want to give people more responsibility and authority deeper in the organization and then hold them accountable,” Whitacre said. “We’ve realigned our leadership duties and responsibilities to help us meet our mission to design, build and sell the world’s best vehicles.”

Mark Reuss is named president of GM North America. Reuss was briefly vice president of Engineering after leading GM’s Holden operations in Australia in 2008. Reporting to Reuss will be Susan E. Docherty, who is appointed vice president, Vehicle Sales, Service and Marketing operations. Also aligned under the new North American group will be Diana D. Tremblay, who is named vice president, Manufacturing and Labor Relations. Tremblay was most recently vice president of Labor Relations. Denise C. Johnson is named vice president, Labor Relations. Johnson was most recently vehicle line director and chief engineer for Global Small Cars.

Nick Reilly is named president, GM Europe. Reilly has been leading the restructuring efforts in Europe with the Opel/Vauxhall operations and will leave his role leading GM International Operations.

Tim Lee is named president of GM International Operations, overseeing GM’s Asia-Pacific, Latin America, Africa, and Middle East operations. Lee was most recently group vice president, Manufacturing and Labor Relations.

Bob Lutz remains vice chairman and will act as advisor on design and global product development.

Thomas G. Stephens remains vice chairman of Global Product Operations, and will now take on global purchasing in his organization, which will continue to be lead by Robert E. Socia, vice president, Global Purchasing and Supply Chain. Karl-Friedrich Stracke is appointed vice president, Engineering, reporting to Stephens. Stracke was most recently executive director of Engineering.

J. Christopher Preuss, vice president, Communications, will now report to Whitacre; he previously reported to Lutz.

The balance of the direct report staff remains unchanged and includes CFO Ray G. Young; John F. Smith, vice president Corporate Planning and Alliances; Terry Kline, vice president IS&S; Mary T. Barra, vice president Human Resources; Mike Millikin, vice president of Legal; and Ken C. Cole, vice president Government Relations and Public Policy.

Biographical information on all GM’s corporate officers

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Test Drive: 2010 Chevrolet Equinox

The New Equinox: A Diamond in the Rough

As a big fan of big sports utility vehicles, my interest in small SUVs and crossovers has been limited to helping my mother select possible vehicles for lease. She bought two Buick Rendezvous crossovers, on my recommendation, and loved them. When GM discontinued the model, Mom went back to a sedan, choosing the award winning Saturn Aura, again, on my recommendation. I’m ready to go three-for-three: “Mom, if you want to go back to driving an SUV or crossover next year, get the all-new Chevy Equinox!”

It is an easy recommendation to make. My mother, as a company retiree, only drives General Motors vehicles. If she wants to return to the comfort, practicality, and sure-footed traction of a crossover/SUV, the new Equinox is the ticket.

Chevy has done a great job designing this latest generation of the popular Equinox. With competition from the class-leading Honda CR-V and the popular Toyota RAV-4, and the rough landscape for American automakers, Chevy really needed to hit a home run with the second generation Equinox. After spending a week in the Equinox LT with front wheel drive, I am left thinking that front-to-back, side-to-side, top-to-bottom, the new Equinox is winner.

Exterior Appearance

On the outside, the new Equinox looks larger than the previous generation and takes advantage of GM’s many styling improvements. The standard Chevy grill with body-colored bar through the middle and the trademark Chevy bow tie logo, new headlamps, fog lights, tail lamps, fender flares and side panel lines combine to give the vehicle’s small body and more muscular look. Add the optional 18-inch or 19-inch wheels and you have some real beef. This moves the Equinox from a soft, female oriented vehicle to a harder, more unisex model in my mind.

Power

Under the hood, the Equinox comes with a 2.4 liter, I-4, direct injection engine producing 182 horsepower and 172 lb.-ft. of torque. A 3.0 liter, V-6, direct injection engine producing 264 horsepower and 222 lb.-ft. of torque is optional. My test model had the standard engine, which I found to be surprisingly adequate. While I would prefer the more powerful V-6 setup, the four-cylinder setup will be just fine for those who place less emphasis an acceleration and require less than 1,500 pounds of towing capacity. Also, these power ratings match or nearly match the Honda and Toyota competition. Any differences are so minor they are negligible.

As for efficiency, my energetic driving style allowed my to manage only 18.3 MPG in city driving during my week in the Equinox. EPA fuel economy ratings for the Equinox are 22 MPG in the city and 32 MPG on the highway. These figures match or surpass the Honda CR-V and Toyota RAV-4.


Interior Appearance and Comfort

The new Equinox has a far more attractive interior than the previous generation. Seating appears more upscale. My test model included optional leather appointed seating, which was quite comfortable. Leg, head and shoulder room is plentiful, both front and rear. The most notable and welcomed improvement, in terms of interior appearance, is the center console. I never liked the former styling, which looked more like a mini-van console than an SUV console. The 2010 model now employs a more traditional SUV console with the gear shifter, and cup holders in the expected positions.

Features

Standard features on the 2010 Equinox are plentiful. Among the safety features are antilock brakes, dual front and side airbags, and a rearview camera system that puts the video screen right in the rearview mirror. Outside the vehicle, heated power sideview mirrors, roof rack side rails and fog lamps are all standard. Inside, you will find GM’s trademarked Multi-Flex sliding rear seat, a premium 8-speaker audio system with CD player and AM/FM/XM radio, and Bluetooth connectivity for your cell phone. GM has also, finally, combined the key with the key fob in switchblade style. But, the best feature is the cargo space. With rear seats upright, it is large enough to accommodate your golf bag! Impressive, considering the larger HUMMER H3 cannot make the same claim.

Summary

The 2010 Chevrolet Equinox is one of the vehicles General Motors is counting on to help fuel is rebirth and return to prominence in the auto industry. The first new vehicle introduced after bankruptcy, the Equinox is a great start for the New GM. It has the look, the feel and the features to make this large SUV lover consider the smaller package.

Test Drive: 2009 Chevrolet Aveo5 Hatchback

The Small Car with No Heart

Nearly 30 years ago, when I was in high school, my first car was a late 1970's model Toyota Corolla. It had a four cylinder engine with a four-speed manual transmission. That Corolla was a great little starter car until the frame, probably stressed from the harsh Michigan winters which include the liberal use of corrosive rock salt to keep roads ice free, broke. While in college, I had an early 80's Honda Accord hatchback, also with a four cylinder engine and manual transmission. it was the perfect car for a young college guy looking for mobility and practicality.

Fast forward and I can say the same thing about the 2009 Chevrolet Aveo-- After spending a week driving the vehicle, it's the perfect car for young college bound students who need mobility and practicality.

Chevy offers the Aveo in three trims, all with GM's Ecotec 1.6 liter, dual overhead cam engine. It produces 106 horsepower and 105 pound-feet of torque. On paper, not bad for a this type of car. But at no time did I feel like the Aveo was adequately powered. Acceleration was anemic and passing power was next to non-existent. Of course, my frame of reference is based on the thirsty eight cylinder powered vehicles in my own garage.

What the Aveo lacks in power, it makes up for in its interior. I was quite impressed with the look and layout of the car and found it quite comfortable for a sub compact. Safety ratings are also a plus. The National Highway Traffic Safety Administration (NHTSA) gives the Aveo its highest marks, 5-stars for frontal crash ratings and 4-stars for side crash and rollover ratings.

Designed and built by GM-Daewoo in Korea, the Aveo does not have the heart or soul of the typical Chevy, but it will do for your newly licensed teenager or college bound young adult. Starting price is $15, 365. Can anybody say, "nice high school graduation gift?"

Appearance

On the outside, the Aveo looks like the typical sub compact. Its most distinctive feature might be the now-Chevy standard front grille design with a body-colored bar through the middle and the trademark Chevy bow tie logo. Front and rear light designs help provide an aggressive appearance and the optional 15-inch, 5-spoke aluminum wheels on my test model helped make the Aveo somewhat easy to look at.

Power

Under the hood, the Aveo needs help. For all of the aggressive look Chevy tries to give the Aveo, when you start it up and give it some gas, you quickly learn this dog is all bark, no bite. As I have already stated, the Ecotec 1.6L DOHC engine is anemic. It needs an iron injection to counteract the condition. If the exhilaration one feels from acceleration is measured in G-forces, is it possible for that number to be negative?

My test model was equipped with the optional four-speed automatic transmission. It performed adequately in city driving and also once I got up to speed on the highway. But forget about passing anyone.

As for efficiency, you would expect some big numbers from the Aveo. The EPA fuel economy estimates are 25 MPG/City and 34 MPG/Highway. I did not take a highway road trip in the Aveo (and, I really wouldn't want to) but the Aveo's city performance, under my foot, was less than impressive. I drove 112 miles consuming about 5.6 gallons of regular gasoline. That works out to a disappointing 20 MPG. I must have really been pushing the car to make me feel the acceleration.

Comfort

On the inside, the Aveo does not disappoint. I never expect much from sub compact interiors so opening the doors to find a clean, convenient dash layout, plenty of room, optional leatherette seats along with leather-wrapped steering wheel and shift knob was quite satisfying. Leg and headroom were plentiful almost creating the illusion that I was not inside a sub compact.

Features

My test model was the Aveo5 2LT. Standard features included some surprises. Things like power windows, power door locks, remote keyless entry with alarm, tire pressure monitor system, stainless steel exhaust. I did not expect to find those features offered without having to pay extra for them. Add to that list the 180-watt, six speaker AM/FM stereo with CD player, auxiliary input jack and steering wheel controls and I say, "nice touch, Chevy!" XM Satellite Radio is also standard with the first three months of service included.

In addition to the aluminum wheels, automatic transmission, leatherette seats, leather-wrapped steering wheel and shift knob already mentioned, my test model also included an optional antilock brake system with engine immobilizer.

Summary

The first three letters in the Aveo name are also the first three letters in the word I will use to describe the car overall-- average. A decent appearance, good comfort and nice features on the plus side; Lack of power and less than stellar fuel efficiency on the minus side. I will stick with my initial assessment-- not the car for me, but a great first car for kids.

Would You Drive A Small Car?

The auto industry has been in turmoil for much of the last year. As the recession set in, car sales plummeted pushing two of this country's Big 3 automakers to request federal help and eventually pushing them both into bankruptcy. Now, as car companies work to turn things around, the federal government is pushing them all-- domestic and foreign-- to produce and sell more fuel efficient vehicles. Translated-- most believe that means large V-8 powered sedans, trucks, sport utility vehicles and performance cars are on their way out, to be replaced by tiny, 4-cylinder powered sub compacts. The big question is would a small car work for you?

GM Unveils 2010 Transformers Special Edition Chevy Camaro

General Motors has announced what many would consider a "no-brainer" decision concerning its hot new 2010 Chevrolet Camaro-- the availability of a TRANSFORMERS special edition. It's a $995 option that puts AUTOBOT shields and TRANSFORMERS logos on various locations of the car, including side panels, wheel center caps and rally stripes. And, of course, the car is yellow, just like the "Bumble Bee," character featured in the 2007 and 2009 Transformers movies.

Here's the GM news release:

Chevrolet announces the 2010 Camaro TRANSFORMERS Special Edition

DETROIT - Fans of the new Camaro and the blockbuster TRANSFORMERS movies can now combine their love of the car and the films with the Chevrolet Camaro TRANSFORMERS Special Edition announced today at Comic-Con in San Diego.

"When the first TRANSFORMERS movie was setting box office records, we had countless customers asking to purchase the 'BUMBLEBEE' Camaro," said Karen Rafferty, product marketing director, Chevrolet. "Now, they can buy one with the new Camaro TRANSFORMERS Special Edition. Streets all over North America will be buzzing in no time."

Features such as an EPA-rated 29 highway mpg on the V6-powered Camaro, Bluetooth phone connectivity, USB connectivity, XM Satellite Radio and OnStar combined with TRANSFORMERS design cues add to the car’s status as a 21st century sports car.

“Hasbro is thrilled to team up with Chevrolet and excited to see the Camaro TRANSFORMERS Special Edition come to market for our fans to enjoy,” said Samantha Lomow, Global Brand Leader for TRANSFORMERS at Hasbro. “The yellow Camaro with the black stripes has become so iconic and closely associated with the BUMBLEBEE character that this edition was a natural fit for both companies.”

While the aggressive styling of the Camaro is unmistakable, true TRANSFORMERS fans will notice some of the unique, but subtle features of the Camaro TRANSFORMERS Special Edition.

The 2010 Chevrolet Camaro TRANSFORMERS Special Edition includes the following:

· AUTOBOT® shield on the driver and passenger side panels

· AUTOBOT® shield on each of the four wheel's center cap

· AUTOBOT® shield embroidered on interior center console

· "TRANSFORMERS" logo on driver and passenger doors' sill plates

· "TRANSFORMERS" logo embedded into the hood rally stripes

· High-gloss black center rally stripe package

· Manufacturer’s suggested retail price of package: $995

Dealers are now taking orders for this car. Customers can order the TRANSFORMERS Special Edition as either a Rally Yellow LT or SS model. The optional RS appearance package can also be added.

The V6-powered Camaro uses a 3.6L engine with variable valve timing to optimize performance and fuel economy. It is SAE-certified at 304 horsepower (227 kW) and 273 lb.-ft. of torque (370 Nm). A six-speed manual transmission is standard with the 3.6L engine; a Hydra-Matic 6L50 electronically controlled six-speed automatic, with TAPshift control, is available.

The high-performance Camaro SS is equipped with a powerful 6.2L V-8, with a choice of a six-speed manual or six-speed automatic transmission. Manual transmission-equipped models receive the LS3 engine, SAE-certified at 426 horsepower (318 kW) and 420 lb.-ft. of torque (569 Nm). It is paired with a TR6060 six-speed transmission.

A new, L99 V-8 engine is used on automatic transmission-equipped SS models. It is based on the LS3, but also includes GM’s fuel-saving Active Fuel Management feature. It is SAE-certified at 400 horsepower (298 kW) and 410 lb.-ft. of torque (556 Nm). It is matched with a Hydra-Matic 6L80 six-speed transmission that helps delivers an EPA-estimated 25 mpg on the highway.

Test Drive: 2010 Jaguar XF

This Kitty Really Purrs

The last time I drove a Jaguar car was 1986, I think. I was staying with friends in Silver Spring, Maryland and the XJ had once belonged to my friend's mother. I drove the car to Annapolis to visit friends I had left behind at the U.S. Naval Academy. I remember concluding that the Jag was a nice ride but not for me, mostly because I did not find it very attractive.

Fast forward 23 years. The 2010 XF is a sleek, swift, powerful cat capable of taming tight urban jungles and wide open highway ranges. I am quite impressed with the way it looks and the way it handles, though I feel it falls a bit short in terms of sportiness in the handling category. It lacks nothing in terms of luxury. One look at the XF made my eyes get wide and my jaw drop open. Once I gathered myself, the word "Wow" escape my mouth. That process repeated itself when I got inside.

The XF is loaded with gadgets that put new and interesting twists on old standards. Steering wheel controls for the sound system and cruise control are, themselves, wheels that, at times, felt awkward only because they are different than any others I had ever used. The glove compartment opens in a unique way. Instead of the typical lever on the compartment door, you touch a small sensor on the wood veneer, and voila! The compartment pops open. But, the feature everyone talked about was the gear shifter. It's a round knob that recesses into the console when the car is off and rises when you start the engine. Quite cool.

Speaking of starting the car, that happens at the push of button as long as your foot is on the brake pedal and the smart key fob is with you. Oh, what a nice sound the engine makes. And, oh what a nice ride it provides.

Appearance

The XF has a classic Jaguar profile with a 21st Century flair. The front grill has hints of Bentley while the rear fascia reminds me of a low-slung Lexus LS460. The frost blue color of my test model was absolutely gorgeous. It set the car off. The 20-inch wheels and performance tires also helped give the car an aggressive stance, much like the big feline for which the company is named.

Power

The XF has a 5.0 liter V8 engine that produces 385 horsepower and 380 lb-ft of torque. Acceleration is brisk, but not necessarily sporty. It felt more like a flagship sedan than a performance sedan. That said, cruising the highway was a pure joy. Passing power is great and the ride is always smooth and quiet.

You do pay for all of this power at the pump. The XF requires premium gasoline and gets an EPA estimated 16 MPG in city driving and 23 MPG on the highway. I averaged a little over 14 MPG during my test week. The enjoyment I got out of driving the car made that expense well worth it.

Comfort

The XF's interior is gorgeous. My test model had the ivory/oyster leather seats with burl walnut veneer trim. Sitting in the car truly makes you feel royal. A couple of my friends sat in the car and felt the same way. While the seats did feel a bit narrow, they were quite comfortable and provided great driving support. Leg room is ample and despite the low-profile roof, head room is also plentiful. Rear passengers will also find very comfortable confines.

Features

In addition to the features discussed earlier, the 2010 XF includes a wide range of standard features. Safety and security features include active head restraints, side curtain airbags and a tire pressure monitor system. On the comfort and convenience list, you will find a blind spot monitor system in the side view mirrors, a touchscreen navigation system and a 320-watt sound system which includes a 6-disc CD changer and iPod connectivity with the special cable included. I was impressed when I plugged my iPod in and the Jaguar logo appeared on the player's screen. But, I was disappointed when the system read my iPod music library, but would not access all of the folders. I was able to play some but not all. The same held true for the Bluetooth connection for the phone. The system read my phonebook, but I could not access numbers alphabetically.

Summary

Overall, the 2010 Jaguar XF is impressive. Great looks, great comfort, and for a luxury sedan, not a bad price. The base model XF starts at $52,000. The XF Premium starts at $57,000. Add the Portfolio package, included on my test model, and the starting price goes to $61,000. Those who require supercharged power can opt for the XFR which starts at $80,000. A 4-year/50,000 mile warranty is standard on all models.

Chrysler rips ‘for sale’ sign off Dodge Viper business: AutoWeek Magazine

Chrysler rips ‘for sale’ sign off Dodge Viper business: AutoWeek Magazine

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The New GM Launches

GM CEO announces launch of new, leaner company after clearing bankruptcy in 40 days. Below is GM release on announcement. -MW

DETROIT – The new General Motors Company began operations today with a new corporate structure, a stronger balance sheet, and a renewed commitment to make the customer the center of everything the new GM does.

“Today marks a new beginning for General Motors, one that will allow every employee, including me, to get back to the business of designing, building and selling great cars and trucks and serving the needs of our customers,” said Fritz Henderson, president and CEO. “We are deeply appreciative for the support we have received during this historic transformation, and we will work hard to repay this trust by building a successful new General Motors.”

Created from the old GM’s strongest operations in an asset sale approved by the bankruptcy court on July 5, the new GM is built on:

· Four core brands in the U.S. and the largest, strongest dealer network in the country,

· A fresh lineup of Chevrolet, Cadillac, Buick and GMC cars, trucks and crossovers, each with leading-edge designs and technologies that matter to both consumers and the environment,

· A competitive cost structure, a cleaner balance sheet, and a stronger liquidity position that will enable GM to invest in new products, key technologies, and its future,

· A winning culture focused on customers and products.

“One thing we have learned from the last 100 days is that GM can move quickly and decisively,” said Henderson. “Today, we take the intensity, decisiveness and speed of the past several months and transfer it from the triage of the bankruptcy process to the creation and operation of a new General Motors.

“Business as usual is over at GM,” said Henderson. “Today starts a new era for General Motors and everyone associated with the company. Going forward, the new General Motors is fully committed to listening to customers, responding to consumer and market trends, and empowering the people closest to the customer to make the decisions. Our goal is to build more of the cars, trucks, and crossovers that customers want, and to get them to market faster than ever before.”

Committed to great cars and trucks

The new General Motors launches with a clear and simple vision – to design, build and sell the best vehicles in the world.

“A successful auto company needs to focus on both the cost and the revenue sides of the business,” said Henderson. “Success on the revenue side means building the stylish, high-quality, fuel-efficient vehicles that customers want – and getting them to market fast.”

Despite the recent downturn, GM has maintained its cadence of strong new products. In the U.S., for example, the Chevy Camaro has surged past its rivals to lead its segment, while the new Chevy Equinox, Cadillac SRX, and Buick LaCrosse are earning strong initial reviews. Later this year, the Cadillac CTS Sport Wagon and GMC Terrain debut, followed next year by the Chevy Volt, Chevy Cruze and Cadillac CTS Coupe.

This emphasis on great new products is also reflected in the Chevy Agile now launching in Latin America, in the Chevy Cruze and Buick Excelle in Asia Pacific, and in the new Opel Astra in Europe.

Just last month, GM announced its intention to build a new small car at a plant in Orion Township, Michigan, which will add to GM’s growing portfolio of fuel-efficient cars and restore approximately 1,400 jobs.

GM also has moved aggressively to develop a full range of energy-saving technologies, including advanced internal combustion engines, biofuels, fuel cells, and hybrids. The company is also a leader in the development of extended-range electric vehicles, with its first model, the Chevy Volt, currently undergoing road testing and scheduled to launch in 2010. The new GM is also taking steps to make advanced battery development a core competency, and expects to make additional announcements on this matter late this summer.

“The success of our recent launches and the exciting new vehicles and technologies we have in the pipeline are evidence of our ongoing commitment to excel at everything we do,” said Henderson. “Our goal is to make each and every General Motors car, truck and crossover the best-in-class.”

Stronger brands and dealers

As part of its reinvention, the new GM has also focused its resources on four core brands and a stronger, more effective dealer network.

General Motors’ core brands – Chevrolet, Cadillac, Buick and GMC – will have a total of just 34 U.S. nameplates by 2010. This emphasis on fewer, better entries will enable the new GM to put more resources into each nameplate, resulting in better products and stronger marketing.

In May, the company accelerated its dealer consolidation efforts, with the goal of reducing the number of GM dealers in the U.S. from 6,000 this spring to approximately 3,600 by the end of next year. Even so, GM will still have the largest dealer network in the U.S. and GM dealers have committed to continue to improve the total customer experience for GM customers.

“We’re also working on new ways to make car buying more convenient for our customers, including an innovative new partnership with eBay in California to revolutionize how people buy vehicles online,” Henderson said. “Customers will be able to bid on actual vehicles just like they do in an eBay auction, including the option of choosing a predetermined ‘buy it now’ price. We’ll be testing this and other ideas with our dealers over the next few weeks, and hope to expand and build upon them in the coming months. In all cases, our goal is to make the shopping and buying process as easy as possible for GM customers – on their time and their terms. Stay tuned.”

A pledge to regain trust and confidence

General Motors Company is primarily owned by the governments of the United States, Canada and Ontario, and by a trust fund providing medical benefits to UAW retirees. Specifically, common stock will be owned by:

· U.S. Department of the Treasury: 60.8 percent

· UAW Retiree Medical Benefits Trust: 17.5 percent

· Canada and Ontario governments: 11.7 percent

· The old GM: 10 percent

“We are very appreciative of the support provided by the stakeholders through the transformation process. Though General Motors Company will not initially be publicly traded, we will be transparent in our financial and other reporting to further strengthen trust and confidence,” said Henderson. “We expect to take the company public again as soon as practical, starting next year, and to repay our government loans as soon as possible. We are required to pay off the loans by 2015, but our goal is to repay them much sooner.”

Stronger balance sheet

General Motors Company launches with a strong balance sheet, a competitive cost structure, and a strong cash position, enabling it to compete more effectively with both its U.S. and foreign-based competitors here in the U.S., and to continue its strong presence in growing global markets.

The new company acquired old GM’s strongest operations and will have a competitive operating cost structure, partly as a result of recent agreements with the United Auto Workers (UAW) and Canadian Auto Workers (CAW).

In the U.S., the new GM will be a far leaner company. By the end of 2010, the company will operate 34 assembly, powertrain, and stamping plants, down from 47 in 2008, and capacity utilization is expected to reach 100 percent during 2011. Overall U.S. employment will decline from about 91,000 at the end of 2008 to about 64,000 at the end of this year, creating a company sized to respond quickly to changes in the market, while still retaining the global scope necessary to develop world-class products and technologies.

The new GM will begin with a much stronger balance sheet, including U.S. debt of approximately $11 billion, which excludes preferred stock of $9 billion, and could change under fresh-start accounting. In total, obligations have been reduced by more than $40 billion, representing mostly unsecured debt and the VEBA trust fund that provides medical benefits to UAW retirees. The stronger balance sheet and lower break-even point will allow the new GM to reduce its risk, operate profitably at much lower volume levels, and reinvest in the business in the key areas of advanced technology and product development.

GM’s subsidiaries outside the United States were acquired by the new company and are expected to continue to operate normally without any interruption.

A new way of doing business

With the launch of the new General Motors, company leaders will work to change the culture of the company, making the speed and decisiveness that GM demonstrated over the past several months the new way of doing business, and adding an intensified focus on the customer.

Edward E. Whitacre, Jr., who oversaw the creation of the new AT&T, will serve as chairman of a GM board with a number of new directors. Henderson will continue as president and chief executive officer, working closely with Whitacre. He also will take responsibility for GM’s operations in North America, eliminating the GM North America president position.

To speed day-to-day decision-making, two senior leadership forums, the Automotive Strategy Board and Automotive Product Board, will be replaced by a single, smaller executive committee, which will meet more frequently and focus on business results, products, brands, and customers.

Bob Lutz has agreed to join the new GM as vice chairman responsible for all creative elements of products and customer relationships. Lutz and Tom Stephens, vice chairman, product development, will work together as a team, partnering with Ed Welburn, vice president of design, to guide all creative aspects of design. GM’s brands, marketing, advertising, and communications will report to Lutz for consistent messaging and results. He will report to Henderson, and be part of the newly formed executive committee.

“I am pleased to announce that we are ‘unretiring’ Bob Lutz so he can fill this important position in the new GM,” said Henderson. “He has a proven track record of unleashing creativity in the design and development of GM cars and trucks. This new role allows him to take that passion a step further, applying it to other parts of GM that connect directly with customers.”

General Motors will also end its regional operating structure, moving decisions closer to the customer. This eliminates the regional president positions and the regional strategy boards. Nick Reilly will be named executive vice president of GM International Operations (GMIO) which will be based in Shanghai.

GM is also removing layers of management – reducing the number of U.S. executives by 35 percent and overall U.S. salaried employment by 20 percent by the end of this year – flattening the organization and speeding decision making.

Additional details of the new structure and leadership moves will be communicated later this month, said Henderson. “These and other actions will simplify our organizational structure and reduce the level of bureaucracy that, in the past, has prevented GM from moving faster.”

More direct communications

Henderson also announced initiatives to open more direct communications between customers and GM employees at every level. “Beginning next week, we will launch a ‘Tell Fritz’ website where customers, or anyone else, can share ideas, concerns, and suggestions directly with senior management. I will personally review and respond to some of these communications every day.”

Henderson and other General Motors leaders will go on the road regularly to meet with consumers and others with a stake in the new GM. “In August, we’ll begin regular visits with customers, dealers, suppliers, employees and others – in the U.S. and abroad – who impact our relationships with customers. We’ll be listening to their ideas, and acting on the ones that will improve our ability to serve our customers better. And of course, other executives and I will continue to reach out to customers through our ongoing web and Twitter chats.

“Today we launch the new General Motors, and our promise is simple. We will be profitable, we will repay our loans as soon as possible, and our cars and trucks will be among the best in the world,” said Henderson. “We recognize that we’ve been given a rare second chance at GM, and we are very grateful for that. And we appreciate the fact that we now have the tools to get the job done.

“To our current customers, we appreciate the confidence that you have placed in us, and going forward, we’ll offer you nothing less than great cars, trucks and crossovers, with unmatched customer service. To those who have supported us through this challenging time, we are deeply grateful,” said Henderson. “And to those who have never tried a GM vehicle – or who have tried one and been disappointed – we look forward to the chance to win your business and earn your trust.”