GM resurrects from bankruptcy

A new GM is here!! New GM emerges from bankruptcy today as a smaller company with fewer brands and owned by the US government. Lighter, smaller, quicker and more responsive to customer needs - that's the feature of the new GM.

The new GM will be majority owned by the US government with a 60.8 percent stake. The Canadian government will also own an 11.7 percent share of the new company. The US Treasury will have committed some 50 billion dollars to GM by year's end. The remaining share of the now private company will be held by the UAW (17.5 percent) and bondholders who previously held GM debt will get 10 percent of the new GM.

Central to the new GM manifesto is an openness to customer input, a new buying structure that allows eBay-like purchasing, including 'but it now' pricing, and a focus on continuing to turn out new products that are their own best argument for buying GM.

"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," Henderson said of the as-yet-unannounced plan to partner with eBay for sales.

GM's transformation into its newer, lighter self isn't yet complete, however. Downsizing will continue through 2011 at least, with a reduction of 13 plants to just 34 in operation by the end of 2010, and a cut in U.S. jobs from the 91,000 GM had at the end of 2008 to around 64,000 by the end of 2009.

Since the US government now owns GM, Congress can act to exert control, and a majority of House members have voted for a bill that blocks the closing of GM and Chrysler dealerships in order to help save jobs. But GM needs to close the 1,300 dealerships it had planned to in order to trim its operations and become a viable company once again.

Opening more communications channels, including direct employee interaction with customers, is also a core element of GM's plan to help bridge the 'perception gap' between its products and what people think when they hear the GM name. Fritz Henderson will lead the charge, launching his own blog and ramping up use of social media tools like Twitter.

"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," said Henderson. "And of course, other executives and I will continue to reach out to customers through our ongoing web and Twitter chats."

The President of GM North America, Troy Clarke, said, "This is a new General Motors, which is going to be focused on fewer brands, fewer entries...We'll ask for people to please give us that one look. Give us that one consideration and we won't disappoint you."

It's still long way to go for the new GM to really recover from bankruptcy and rebuilt reputation. What's your point?

Spy shots: Cruze-based Buick compact sedan

General Motors is still more than a year away from launching the Chevrolet Cruze sedan in North America. But now Buick is preparing to unveil a new entry-level model which is based on the GM’s FWD Delta II platform that underpins the Chevrolet Cruze. The upcoming Buick compact sedan will likely be offered as a global model like the Cruze.

In terms of styling, the baby Buick will feature traditional Buick design cues, such as a waterfall grille, and with these latest spy shots we get a first opportunity to see the interior for the first time. The Buick compact sedan also shares much in common with the 2010 Opel Astra, a model that also shares the same platform, which means there’s a chance it could be produced at Russelsheim plant in Germany.

U.S. versions are likely to be built at GM’s Lordstown plant in Ohio alongside the Cruze. The new model will almost certainly be offered in China as well, considering that is Buick’s biggest market.

Engine options should mirror that of the Cruze, which means a range of compact four-cylinder units in both naturally-aspirated and turbocharged forms, with both petrol and diesel options.

The other benefit of the Delta II platform is the possibility of a plug-in hybrid version using Volt technology, although GM is more likely to use other brands such as Cadillac to expand its plug-in hybrid range.

The new sedan will be launched until sometime in 2012, possibly as a 2013 model.

2010 Buick LaCrosse adds new Ecotec 2.4L direct-injection four-cylinder engine

The powertrain lineup of the 2010 Buick LaCrosse already includes the 3.0L and 3.6L V6s as previously revealed, now Buick has announced they will be adding the fuel efficient 2.4-liter four-cylinder Ecotec engine to the upcoming 2010 LaCrosse.

To get a balanced mix of fuel efficiency and performance, the direct-injected 2.4-liter Ecotec boasts 182 horsepower (136 kW) and 172 lb-ft (233 Nm) of torque. More importantly, the engine is expected to return 20 mpg city and 30 mpg highway. For comparison, the LaCrosse's 255 hp 3.0-liter V6 and 280 hp 3.6-liter V6 average an estimated 17 mpg city and 27 mpg highway.

All the three engines available in the LaCrosse lineup will feature direct injection technology. “Direct injection is a key component of GM’s ongoing strategy to use advanced propulsion technology to help us deliver more fuel-efficient cars today and in the future,” said Tom Stephens, vice chairman, Global Product Development. “GM is using multiple technology pathways to achieve increased efficiency and to diversify energy sources – and we’re applying them where they make the most sense for customers when it comes to efficiency, performance and cost.”

The LaCrosse main competitors, the Lincoln MKZ and Acura TL are not available with four cylinder engines. So Buick expects it has an advantage even before the street-level comparisons begin.

The 2.4-liter Buick LaCrosse will be offered "later this year" with a base price slightly below the 3.0-liter LaCrosse of $27,085.

Saab 9-4X coming by 2010

Saab’s split from General Motors and pending sale to supercar company Koenigsegg will apparently have no major affect on the Swedish automaker’s future model launches, such as that of the upcoming 9-4X crossover.

According to GM's executive director of product and marketing for Cadillac, Hummer and Saab, Steve Shannon, the 2011 Saab 9-4X crossover will launch next yea. Speaking with Automotive News, Shannon explained that the 9-4X will be positioned as the replacement for the poor selling 9-7X. The 9-4X will be similar in size to BMW’s X5 but pricing should be closer to that of the X3 and Volvo XC60 – two of the Saab crossover’s prime targets.

The new crossover will share much in common with the recently-revealed Cadillac SRX and is to be manufactured by GM at the same Ramos Arizpe facility in Mexico as the Cadillac later this year.

These spy photos of the 9-4X testing in Europe show an almost completely undisguised look of the new crossover. No specific details have been offered. But it’s reported that the 9-4X will run a 284hp (209kW) petrol V6 engine mated to a six-speed automatic gearbox. It will also get 18in alloys shod with 255mm tires and a Haldex-sourced AWD system with an electronic differential. A diesel version is expected to be offered in Europe, developing 185kW and 550Nm of torque.

While development work on the 9-4X appears to be almost complete, Saab will be introducing two models before the arrival of the new crossover - the smaller 9-3X crossover and the all-important 2010 9-5.

Two-mode Chevrolet Equinox hybrid coming in 2011

Before the economic downturn, General Motors had some major plans for its Saturn brand including the launch of a two-mode hybrid Vue and eventually a plug-in hybrid version. Although the development has been completed for both cars and production has already been set to start last November, declining sales and an inevitable bankruptcy forced GM to readjust its plans.

The biggest change is the sale of the Saturn brand to the Penske Automotive Group, the owner of the second largest dealership in the US. As for the hybrid vehicles, GM has already confirmed that the technology for the Vue plug-in hybrid will be retained and used in other brands, and now the automaker has revealed to AutoblogGreen that the Vue two-mode hybrid has been cancelled.

Instead, GM will use the FWD two-mode system for its Chevrolet Equinox crossover, which should arrive on the market in petrol-electric configuration in 2011. The system in the Vue was to use a 3.6L V6 engine mated to the two-mode hybrid drive system. Since the Equinox uses a different 3.0L V6 engine, GM will need additional time to redesign the system.

The two-mode system utilizes an Electrically Variable Transmission (EVT) that GM developed together with Mercedes-Benz and BMW and currently uses in the Chevrolet Tahoe and Silverado, as well as the GMC Sierra and Denali, and Cadillac Escalade hybrid vehicles.

Chinese-built Chevrolet Spark, Aveo and Lova could hit U.S. showrooms by 2011

Finding ways to get cars to market with less expense and more profitability is the name of the game. General Motors is going to build more and more cars overseas as part of its restructuring plans, and that China was one of the first places they'd look.

As reported, General Motors is considering bringing its low-cost, high-volume vehicles from China to the U.S. in order to bolster its sales in the segment. Currently, the carmaker is looking to sell around 17,300 Chinese-made vehicles in the U.S. by 2011 and over 50,000 units by 2014. Until now, however, it was uncertain just what type of vehicles the carmaker would be bringing to local showrooms.

Speaking with the Detroit Free Press, a senior Global Insight market analyst in Shanghai predicted that GM would likely bring Chinese-built versions of the Chevrolet Spark and next-generation Aveo, as well as another small car called the Lova. Under such a plan, the cars would be produced by GM’s partners in China, Shanghai Auto Industry Corporation (SAIC) and Liuzhou Wuling Auto.

While the predictions about these cars comes from a reputed market intelligence company, other analysts are not quite so sure about GM's overall plans to import cars from China, however. One analyst from a Shanghai based company stated that GM's "export aspirations are a marketing tactic, not a real solid opportunity", but that they were "certainly a possibility in the future."

Furthermore, the news has angered local unions which believe that taking government support but then outsourcing jobs to China is an underhanded move. However, remaining competitive is GM's ultimate long term goal, and should it pursue Chinese imports then it will likely be the first major carmaker in the U.S to do so.

Along with the rise in Chinese-made vehicles for U.S. sale, Mexican-made cars and trucks would increase significantly as well, from the current 317,000 to 501,000 by 2014, while cars made in South Korea for the American market would increase almost five-fold from 36,000 to 157,000 by 2014.