Autoblog

It's an epic poem that could have been written by Byron: you suffered a nasty breakup and met a new girl, you dated for a while, things were looking outstanding, you proposed... and then the bottom dropped out of the medium-duty truck business. We've seen it all before. And now that it's happened, Navistar has backed away from it's non-binding commitment to purchase GM's medium-duty truck operations.

GM and Navistar only had a memorandum of understanding, so there appears to be no harm, no foul in Navistar getting icy feet. The brief announcement of the dissolution presents it as a mutual affair: "Due to significant marketplace and economic changes, GM and Navistar have decided not to renew the memorandum of understanding to purchase GM's medium duty truck business," but we imagine GM standing at the altar, watching its Navistar groom bolt from the church and hop in a taxi.>

GM is still talking to Navistar and looking at other ways to dump find a good home for its medium duty truck business. A shame, because they make some fine vehicles.

[Source: GM]

It is no secret that the automotive industry is hurting for sales to close out 2008. Over the past few months incentives have been thrown out left and right to draw in more buyers. The deals have not done enough to bring folks into the showroom, though. With all the media talk of bleeding Detroit, consumers know that the domestic manufacturers have been holding out on their best offers. Perhaps the memory of 2005's employee pricing incentives has kept many waiting on the fence. With 2009 models heading to dealerships as we speak, General Motors is hoping to end the stalemate. It will be testing the waters of employee pricing yet again beginning Wednesday, August 20th and running through September 2nd.

The employee discount program will apply across all 8 GM brands. Buick, Pontiac and GMC dealers will mark down 91 percent of their inventory on all 2008 models, along with the 2009 Pontiac Vibe and G5, Chevy Cobalt and HHR and, surprisingly, the Cadillac CTS. Chevrolet dealers can unload 90 percent of their 2008 inventory with all 2008 models eligible for the employee price. Cadillac, Saturn, SAAB, Hummer will each have their own stipulations as well, but it is certain that the discount will be widespread. The price reduction varies from vehicle to vehicle, but is typically on order of a few thousand dollars. Additional incentives will also still be offered on some slower selling items, such as, you guessed it, trucks and SUVs. So the question is, will employee pricing get you off the fence and into a dealership?

[Source: GM]

One of the cooler aspects of the Woodward Dream Cruise is that its completely open and unmoderated. It's the ultimate "run what you brung" event. Hundreds of thousands of people sit along the edge of the road and watch everything from bikes to trucks go by and the juxtaposition can be fascinating. Seeing a giant yellow high riding pickup truck with the front end of a Chevy Kodiak bearing down on a custom vinyl wrapped Smart is definitely an interesting sight.

Click above for high-res gallery of GM's display on Woodward Ave.

For the past several years General Motors has been using the Athens Coney Island Restaurant on Woodward Ave. as a base of operations for the Dream Cruise. The parking lot this year is again filled with classic, wannabe classic, and future classic GM machinery, much of it brought out from the GM Heritage Center in nearby Sterling Heights. For those who haven't yet seen the new Camaro in production form, the red RS we saw a few weeks ago is on display here in the parking lot along with a ZR1 in police markings and what must be one of the most yellow first generation Camaros anywhere. The powertrain tent at the back of the lot is filled with past present and future powertrains from the Z11 427 to the two-mode hybrid and even a fuel cell stack. The parking lot area is open to the public all day, so come on down. If you can't make it, check the gallery below.

Click above for high-res gallery of the 2009 Chevy Tahoe XFE

Remember earlier in the year when Chevy quietly added the 36-mpg XFE model to its Cobalt lineup? XFE stands for "Xtra Fuel Economy" (should we tell them they spelled "Extra" wrong?) and means these vehicles have been equipped with some easy fuel-saving technologies to eek out as many miles per gallon as possible. GM announced today that the Cobalt XFE will be joined by XFE versions of the Chevy Silverado, GMC Sierra, Chevy Tahoe and GMC Yukon for the 2009 model year.

The General already offers hybrid versions of its full-size SUVs, which are also joined by hybrid versions of its half-ton trucks for 2009, but the XFE models will continue to be powered by a flex-fuel version of the company's 5.3L gasser V8. It produces 320 hp/340lb-ft in the Tahoe and Yukon, and 315 hp/338 lb-ft in the Tahoe and Yukon. All are rear-wheel-drive only and mated to GM's 6L80 six-speed auto with a fuel-saving 3.08 ratio rear axle. In order to maximize fuel economy, all four of these new XFE models get low rolling resistance tires, aluminum wheels, an aluminum spare wheel, aluminum lower control arms and a lowered suspension with revised tuning. In addition, the Silverado and Sierra also get a new front lower air dam and soft tonneau cover that improve their aerodynamics.

What does it all add up to? 1 mpg. All four standard vehicles were rated at 14 mpg city/20 mpg highway, while their XFE counterparts bump those numbers to 15 city/21 highway. The gains are certainly minimal and we're not sure yet what sort of price premium XFE models will demand, but we give GM credit for at least reacting to the current shift in consumer tastes so quickly. We would have preferred, however, that it had just made these fuel-saving changes standard equipment rather than a separate model.


[Source: GM]

General Motor's car czar, Bob Lutz, sat down with the little people of the blogosphere after GM's announcement that it would be reducing white collar expenditures by 20-percent, cutting truck production and eliminating retired health care for salaried workers over 65, all in an effort to boost its liquidity by $15 billion by the end of 2009.

Maximum Bob addressed questions about GM's entire brand portfolio, saying, "Pontiac will be nourished with products" and confirming that GM is in talks with financial institutions about HUMMER, and that, "If we could sell the brand, we'd be interested in doing that."

Predictably, much of the conversation centered on fuel efficiency and the General's plans to address the growing demand for miserly transport in the U.S. Lutz made it clear that "as fuel costs in the U.S. begin to resemble those in the rest of the world" it will be easier for GM to realign its products on a global scale.

[Photo: David McNew/Getty]

General Motor's "commercial grade" truck unit may be losing two of its planned products, leaving some to contemplate the future of the nameplate in general. It's too early to consider GMC dead, but with the apparent cancellation of the next-generation Acadia CUV as well as the planned unibody truck inspired by the Denali XT Concept, GMC dealers are likely left wondering what, beyond the new GMC Terrain, they are supposed to be selling in the next few years. We're not all that sad to see the Acadia go as the Chevy Traverse is a better looking overall package and it makes more sense to offer the CUV as a Chevrolet anyway. What's more, with most GMC dealers also offering Buick vehicles, they'll still have the Enclave to offer potential customers.

Current rumors also predict an end to the Saturn Outlook, the slowest seller of the original Lambda-based trio, which would leave the Enclave and the Traverse as the two remaining GM crossovers. There still seems to be a good chance that Chevrolet will get an SUT based off the platform as well, so nothing too important seems to have been lost with this decision.

[Source: GM Inside News]

During a dealer teleconference today, General Motors announced it would be launching a zero-percent financing sale beginning tomorrow, while simultaneously raising the prices of its 2009 vehicles.

The "72-hour sale" will run from June 24th through the 30th, and will offer customers 0-percent interest rates for 72 months on most Chevys, Buicks, Pontiacs and GMC vehicles. So far, there's no word on whether the offer will extend to Cadillac and Saturn. GM will also offer $500 in "bonus cash" to buyers who opt to purchase GM products outright rather than leasing them.

At the same time, the General is going to be raising the prices of 2009 models by an average of 3.5-percent "across the board," something that was bound to happen, according to Mark LaNeve, GM's vice president of vehicles sales, service and marketing.

On the production front, GM will be adding a third shift to its Lordstown, Ohio plant to increase production of the Pontiac G5 and Chevy Cobalt, while at the same time boosting production of the Pontiac G6, Chevy Malibu and Saturn Aura through the use of maximum overtime. Also of note: GM has hired Citibank to investigate the future of the HUMMER brand, which comes in the wake of GM's CEO, Rick Wagoner's announcement that "all options" are on the table regarding GM's faltering off-road brand.

[Source: Automotive News – sub. req.]

This has been a big year for GM's organization alignment, with President Fritz Henderson opening up about the brand issue snafu and the appointment of four brand czars. HUMMER was meant to join forces with Cadillac and Saab in a premium channel, but while HUMMER is still in the family, it's apparently been put out on the lawn. GM Inside News (GMI) reports that GM is treating HUMMER as a goner, saying that the H4 program is on life support for handover to the next buyer, and the H3 GMT-700 program is kaput.

The bigger hearsay is that GM's board is considering euthanizing GMC or Pontiac. Those two brands were to be aligned in a brand channel with Buick (PBG). Getting rid of GMC could make some kind of sense, since it's entirely brand-engineered vehicles with some of the worst mileage numbers in the fleet. Shunning Pontiac would be a surprise to us since the Solstice and G8 have given it a nice brand awareness boost and it's got some products in the pipeline. If GMC or Pontiac did go, the GM board would consider folding Saturn into the PBG channel to maintain sales volume. In corporate-speak, we believe this is called GM's "gloves off" phase. Thanks for the tip, Dan!

[Source: GM Inside News]

Way back in February, the NHTSA began investigating certain full-size trucks and SUVs from General Motors for the possibility of their engines spontaneously combusting, even when the ignition key is in the 'off' position. At that time, the investigation covered some 423,000 vehicles, and GM seemed pretty confident that the issue would not be widespread. Yeah, it appears as if the General was a little off in that assessment. The engine fire issue may now affect about 2.7 million vehicles, including all of the latest Chevrolet, GMC and HUMMER full-size models.

A preliminary examination of the electric systems throughout these vehicles is being conducted at this time. Depending on the results of the NHTSA's 'Engineering Analysis', a recall could follow. So far, there exists 41 reported cases of non-crash-related underhood fires, with 16 of those supposedly with the ignition turned off. Check after the jump for a complete list of all the possibly affected vehicles.

[Source: Consumer Affairs]