Chevrolet Volt to be Sold in Eight Chinese Cities

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The Chevrolet Volt electric car will go on sale at 13 Shanghai GM Chevrolet dealerships in eight Chinese cities: Beijing, Shanghai, Hangzhou, Suzhou, Wuxi, Guangzhou, Shenzhen and Foshan. It will be priced at RMB 498,000 ($75,533).
The announcement was made Monday as part of General Motors’ participation in Auto Guangzhou 2011. Two of GM’s joint ventures, Shanghai GM and SAIC-GM-Wuling, are displaying more than 30 vehicles from the Buick, Chevrolet, Cadillac and Baojun brands.
China will be among the first global markets to offer the Volt, which provides up to 80 kilometers of pure electric driving. With its onboard engine-generator, it has a total driving range of 570 kilometers in extended-range mode. It produces peak torque of 370 Nm and maximum power of 111 kW and has a 0-100 km/h time of about nine seconds along with a top speed of 160 km/h.
The Volt earned a five-star safety rating from the U.S. National Highway Traffic Safety Administration (NHTSA). Its battery carries a warranty of six years/150,000 kilometers. The Volt’s introduction is part of Shanghai GM’s Drive to Green strategy, which is focused on delivering products that offer higher fuel economy and lower emissions.
Volt buyers will be eligible to join the V+ Club. By calling a bilingual 24-hour hotline, members will receive one-on-one service. In addition, they will be invited to participate in a series of member activities that match their eco-friendly lifestyles.

A New GM Kicks Into High Gear at Product and Technology Event

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A revitalized General Motors reintroduced itself today with an array of all-new cars, crossovers and trucks debuting now through 2011. GM also made a historic announcement: When the Chevrolet Volt extended-range electric vehicle rolls off the assembly line late next year, it will be the first mass-production automobile to achieve triple-digit fuel economy, with an expected 230 mpg in the city, or 25 kilowatt hours per 100 miles.

GM President and CEO Fritz Henderson also confirmed that Cadillac is developing an entry luxury sport sedan to capitalize on the growing market for smaller luxury sedans in the U.S. and globally. The rear- and optional all-wheel drive sedan will compete in the segment below the CTS, delivering outstanding performance and driving dynamics.

At GM’s Design Center and Milford Proving Ground, GM previewed six all-new 2010 vehicles and a glimpse of what is being introduced through the end of 2011:

• Chevrolet alone is introducing 10 new models, including the 2011 Chevrolet Volt
• Buick and GMC are adding 10 new entries, including a Buick plug-in hybrid compact crossover in 2011
• Cadillac is introducing five new models through 2011

Henderson also announced that as part of GM’s commitment to get closer to consumers, GM will use its FastLane blog to gather product research from both fans and critics. One pilot initiative, “The Lab,” will involve GM’s Advanced Design studio and allow users openly talk with designers about ideas and consumer-friendly technologies that were previously shared only in unbranded clinics.

In addition, Henderson said he and other executives plan to talk with consumers in other Web-based and in-person formats in the coming months. On Monday, the new GM executive committee, led by Henderson, showed off products and technologies to about 75 consumers at the GM Technical Center and the Milford Proving Ground.

“The key to restarting this company lies with GM’s customers, cars and culture,” Henderson said. “With four focused brands, we are committed to exceeding our current customers’ expectations and giving consumers plenty of reasons to choose a Chevy, Buick, GMC or Cadillac car or truck.”

Chevrolet Volt fuel economy achieves triple digits

Using development testing based on a draft U.S. Environmental Protection Agency (EPA) procedure for plug-in electric vehicles, the Chevrolet Volt is expected to achieve 230 miles per gallon or better in city driving (25 kW hours per 100 miles). The Volt, scheduled to begin production late next year as a 2011 model, can travel up to 40 miles on electricity from a single battery charge and can extend its overall range to more than 300 miles with its flex-fuel engine-generator.

The EPA test procedure for plug-in electric vehicles, which is still being finalized, assumes a single charge each day. According to U.S. Department of Transportation data (http://tinyurl.com/U-S-DOTStudy), nearly eight of 10 Americans commute fewer than 40 miles a day.

“From the data we’ve seen, most drivers could operate purely on grid electricity in a Chevy Volt,” Henderson said. “A car that gets more than 100 miles per gallon is a significant step in the reinvention of the auto industry and GM is and will continue to be a leader in that reinvention."

Cadillac confirms entry luxury sedan

With the all-new SRX and CTS Sport Wagon coming to market this month, the brand plans to pursue an even bigger piece of the luxury sport sedan market. Cadillac is developing a sport sedan below the acclaimed CTS that will deliver on the price of entry in this highly competitive segment of the luxury market – driving dynamics. With high-tech engines, rear-wheel drive and optional all-wheel drive, the new sedan will take on the best in the segment.

“We are determined to repeat what CTS has already achieved in design, quality, driving dynamics, performance and fuel economy to grow our presence in this high-volume and highly competitive segment,” Henderson said.

Greater customer engagement

While GM has organized customer clinics and collected feedback for many years, the Web provides even greater opportunities to connect with consumers. Henderson said executives will use a combination of in-person meetings and online technology to better interact with them.

“Our customers are the reason we’re here. It’s critical to have their voices help shape our products, and their experience with them,” Henderson said. “Their feedback helps us learn and evolve so we can continuously improve our cars and trucks, and our customer relationships.”

In addition to “Tell Fritz,” a feature on www.gmreinvention.com, in which customers can provide feedback, GM will use its popular FastLane blog (fastlane.gmblogs.com) to launch “The Lab,” a microsite featuring future projects by GM’s Advanced Design team.

Interacting directly with designers, consumers can share input on designs and technologies being considered for future projects. Those who provide detailed demographic information may be invited to participate at a deeper level in future sessions.

2010 launch vehicles by Buick, Cadillac, Chevrolet and GMC

GM’s four core brands are launching six all-new vehicles for 2010. Here’s a brand-by-brand look at what’s new:

Buick: The all-new Buick LaCrosse continues a brand renaissance begun by the Enclave luxury crossover. The LaCrosse is a completely redesigned luxury sedan that offers a sculpted exterior and luxurious cabin; advanced, intelligent personal technologies and safety features; and a choice of two fuel-saving, direct injected V-6 engines. A 2.4L four-cylinder engine joins the lineup later.

Last week, Buick announced it will introduce a compact crossover SUV next year expected to achieve more than 30 mpg on the highway, followed in 2011 by a plug-in hybrid.

Cadillac: GM’s luxury brand launches the SRX crossover and the CTS Sport Wagon into the luxury market, featuring Cadillac’s signature design and technology.

The new SRX is designed to make more inroads into the previously conservative luxury crossover category. A new, 3.0L direct injected V-6 engine is standard, and a new, 2.8L turbocharged V-6 is optional. Both feature greater fuel economy and lower emissions.

The CTS Sport Wagon is a progressive take on the classic wagon body style that delivers significant functionality and fuel efficiency, including an estimated 28 mpg highway. Essentially the same size as the acclaimed CTS sport sedan on the outside, it nearly doubles the cargo carrying capacity, with 25 cubic feet (720 liters) of space behind the rear seats and 53.4 cubic feet (1,523 liters) with the rear seat folded.

Chevrolet: The new Chevrolet Camaro returns after a seven-year hiatus. Its combination of efficient performance, which delivers up to 29 mpg highway and heritage-inspired design exemplify Chevrolet’s commitment to great design and fuel-efficiency.

The all-new Chevrolet Equinox blends distinctive design and outstanding roominess with class-leading efficiency. Chevrolet expects nearly two-thirds of customers will choose the efficient 2.4L engine – standard on all models – that delivers best-in-class EPA-rated 32 mpg highway (FWD models).

GMC: The all-new GMC Terrain crossover SUV offers outstanding fuel economy along with the capability, engineering excellence and refinement that have defined GMC for more than a century. Like other GMC vehicles, the Terrain’s design is characterized by elements that suggest muscularity, with a prominent front end and squared-off edges.

Chevrolet Volt Expects 230 mpg in City Driving

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The Chevrolet Volt extended-range electric vehicle is expected to achieve city fuel economy of at least 230 miles per gallon, based on development testing using a draft EPA federal fuel economy methodology for labeling for plug-in electric vehicles.

The Volt, which is scheduled to start production in late 2010 as a 2011 model, is expected to travel up to 40 miles on electricity from a single battery charge and be able to extend its overall range to more than 300 miles with its flex fuel-powered engine-generator.

"From the data we've seen, many Chevy Volt drivers may be able to be in pure electric mode on a daily basis without having to use any gas," said GM Chief Executive Officer Fritz Henderson. "EPA labels are a yardstick for customers to compare the fuel efficiency of vehicles. So, a vehicle like the Volt that achieves a composite triple-digit fuel economy is a game-changer."

According to U.S. Department of Transportation data, nearly eight of 10 Americans commute fewer than 40 miles a day http://tinyurl.com/U-S-DOTStudy .

"The key to high-mileage performance is for a Volt driver to plug into the electric grid at least once each day," Henderson said.

Volt drivers' actual gas-free mileage will vary depending on how far they travel and other factors, such as how much cargo or how many passengers they carry and how much the air conditioner or other accessories are used. Based on the results of unofficial development testing of pre-production prototypes, the Volt has achieved 40 miles of electric-only, petroleum-free driving in both EPA city and highway test cycles.

Under the new methodology being developed, EPA weights plug-in electric vehicles as traveling more city miles than highway miles on only electricity. The EPA methodology uses kilowatt hours per 100 miles traveled to define the electrical efficiency of plug-ins. Applying EPA's methodology, GM expects the Volt to consume as little as 25 kilowatt hours per 100 miles in city driving. At the U.S. average cost of electricity (approximately 11 cents per kWh), a typical Volt driver would pay about $2.75 for electricity to travel 100 miles, or less than 3 cents per mile.

The Chevrolet Volt uses grid electricity as its primary source of energy to propel the car. There are two modes of operation: Electric and Extended-Range. In electric mode, the Volt will not use gasoline or produce tailpipe emissions when driving. During this primary mode of operation, the Volt is powered by electrical energy stored in its 16 kWh lithium-ion battery pack.

When the battery reaches a minimum state of charge, the Volt automatically switches to Extended-Range mode. In this secondary mode of operation, an engine-generator produces electricity to power the vehicle. The energy stored in the battery supplements the engine-generator when additional power is needed during heavy accelerations or on steep inclines.

"The 230 city mpg number is a great indication of the capabilities of the Volt's electric propulsion system and its ability to displace gasoline," said Frank Weber, global vehicle line executive for the Volt. "Actual testing with production vehicles will occur next year closer to vehicle launch. However, we are very encouraged by this development, and we also think that it is important to continue to share our findings in real time, as we have with other aspects of the Volt's development."

2010 GM Full-Size Pickups Achieve Best-in-Class Fuel Economy

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General Motors announced that powertrain enhancements have enabled Chevy Silverado and GMC Sierra pickups to achieve best-in-class fuel economy, based on the latest EPA estimates.

Silverado and Sierra 5.3L V-8 engine EPA-estimated fuel economy improves for 2010 from 14 city / 20 highway to 15 city / 21 highway MPG, while Extra Fuel Economy (XFE) models move from 15 city / 21 highway to 15 city / 22 highway MPG. This development, combined with the fact that GM's hybrid pickups achieve an EPA estimated 21 city / 22 highway, puts Silverado and Sierra at the top in fuel economy.

Contributing to this development is a new fuel saver mode which enables the trucks to make better use of GM's Active Fuel Management system, running on four-cylinders in light throttle conditions instead of eight. In addition, more efficient six-speed transmission shift points, engine variable valve timing and a lower gear ratio of 3.08 (now standard on GM full-size pickups) each play an important role in the improved fuel economy.

This fuel economy improvement comes with no compromise in capability. Horsepower, payload, and trailering specifications remain the same for Chevy and GMC full-size pickups.

For reference, the following information is the most recent available EPA-estimated comparable fuel economy data for GM's main competitors in this segment.

Ford - 5.4L: 14 city / 20 hwy; 4.6L with 6-speed transmission: 15 city / 21 hwy

Dodge - 5.7L: 14 city / 20 hwy

Toyota - 5.7L: 14 city / 18 hwy; 4.6L: 15 city / 20 hwy

Nissan - 5.6L: 13 city / 17 hwy; 5.6L (E85): 13 city / 18 hwy

GM Announces Plans to Build Small Car in U.S.

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• GM to utilize and retool idled assembly and stamping facility for future production.
• Additional production will help the company deliver outstanding new vehicles to the compact and small car markets and meet future fuel efficiency regulations.

DETROIT, Mich. -- General Motors Corporation (NYSE:GM) announced today it plans to build a future small car in the United States utilizing an idled UAW-GM facility. This vehicle adds to GM's growing portfolio of U.S.-built, highly fuel efficient cars including the Chevrolet Cruze and Volt.

"Small cars represent one of the fastest growing segments in both the U.S. and around the world," said Fritz Henderson, General Motors President and CEO. "We believe this car will be a winner with our current and future customers in the U.S."

The re-tooled plant will be capable of building 160,000 cars annually, which can be a combination of both small and compact vehicles. Selection of the site will be determined in the future.

"I would like to personally thank the UAW for agreeing to work with us to ensure our overall manufacturing competitiveness in the United States," said Henderson. "This vehicle segment, while important today and expected to be more so in the future, is extremely challenging. It takes a special effort by everyone to bring a domestically produced small car to market in a cost-competitive and profitable way - but that is what we are going to do together."

GM already has a strong manufacturing presence in the United States. Currently, about 67 percent of GM cars and trucks sold in the U.S. are built in the U.S. With this announcement, GM anticipates that U.S. production levels will increase beyond 70 percent by 2013, augmenting its already automotive industry-leading U.S. manufacturing footprint.

OnStar Files its 500th Patent Application

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OnStar today announced that it recently filed for its 500th patent, a milestone that further exhibits GM's leadership in technological innovation in the telematics industry. While the patents cover a wide range of technologies and services, this particular application supports OnStar's emergency services, and highlights the company's commitment to working with public safety officials to make our nation's roadways safer.

"Innovation has been the heart and soul of OnStar since we launched services over a decade ago, and our 500th patent filing is a wonderful milestone on what has been an amazing journey," said Chet Huber, president, OnStar. "GM's commitment to technological leadership in this category, confirmed by OnStar patents still being filed at the rate of once every six days, has created a strong and necessary foundation for OnStar's continued leadership across our broad range of safety, security and peace of mind services."

Examples of OnStar's patents include technologies that help make the first maneuvers in a navigation route more accurate, aggregate data from various sources into an easy-to-comprehend e-mail that helps subscribers understand their vehicles' performance and one that helps OnStar monitor diagnostic trouble codes in the vehicle.

The technology behind the 500th patent filing seeks to utilize the OnStar system to notify first responders approaching an alternative fuel vehicle after a crash of the type of propulsion used in the vehicle. High-voltage systems and unconventional fuels are often associated with alternative propulsion vehicles and pose special challenges to first responders.

As GM continues to innovate on the advanced propulsion front with vehicles like the Chevrolet Volt and the Malibu Hybrid, this type of information can be helpful for first responders as they survey the scene of a crash and determine the best way to help those in need.

"This new technology will bring a new level of safety to our firefighters," said State of Michigan Fire Training Director Joseph Grutza. "With the wide variety of automobiles on the road today, having a system that will identify the type of propulsion system of a vehicle that has been involved in an accident will allow us to perform our duties quicker and safer."

The opportunity to invent life-saving technologies like this is one of the reasons the OnStar engineers behind this patent have chosen to work for OnStar. The two inventors named on this patent have a combined 25 years of experience and over 20 patent filings between them.

"What I value most about my job is working for an organization that fosters creativity and innovation, all with the underlying premise of helping others," said Jamie Leyerle, OnStar Systems Operations engineer.

Kevin Krause, OnStar Global Systems engineer, adds, "This patent filing reinforces our dedication to the first responder community. They are our partner, and anything we do to help them in their job ultimately helps our customers. It's very rewarding."

Chevrolet Announces Pricing For The 2010 Equinox

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Chevrolet announced the 2010 Equinox crossover will carry a MSRP of $23,185, including a $745 destination charge, for the FWD LS model. It goes on sale this June.

"Offering the fuel economy of a sedan with the functionality of a crossover, the Equinox is a superior value for our customers," said Ed Peper, GM North America vice president, Chevrolet.

Chevy expects its Equinox to have best-in-class fuel economy at 30 MPG with its advanced 4-cylinder, direct injected engine. It is available in LS, LT and LTZ trim, with available all-wheel-drive. Two new engines are offered, each with fuel-saving direct injection and variable valve timing technology. Vehicle highlights include:

• New 2.4L Ecotec direct injected I-4 engine estimated at 182 horsepower (135 kW), which delivers an estimated 30 mpg highway, 21 mpg city (EPA certification pending)
• New 3.0L DOHC direct injected V-6 engine estimated at 264 horsepower (190 kW), which delivers an estimated 25 mpg highway, 18 mpg city (EPA certification pending)
• Driving range of more than 500 miles (800 km) with both engines, for less-frequent fill-ups
• Six standard air bags: dual frontal air bags; head curtain side air bags and pelvic/thorax seat-mounted side air bags
• Standard four-wheel disc brakes with StabiliTrak electronic stability control and traction control
• Standard OnStar and XM Satellite Radio
• "Advanced" remote starting system that also activates the HVAC system and optional heated seats depending on the outside temperature

Inside, the Equinox features attention to detail, including standard tilt and telescoping steering wheel, standard driver seat power height adjustment and power lumbar, and a number of storage bins: an oversized glove box, a closed storage bin in the instrument panel above the center stack, and closed storage under the center armrest large enough for a laptop computer.

"Getting best-in-class fuel economy and great storage for less than $24,000 is significant," Peper added. "In fact, the starting price for this all-new model is $1,800 less than the previous generation Equinox."

While the all-new Equinox carries a smaller price than its predecessor, the list of standard content is larger - including more airbags, power lumbar support, and 17" wheels. Combine this added content with the improvements in fuel economy, driving performance and available features, and the value proposition improves even more with the 2010 Equinox.

Chevrolet is one of America's best-known and best-selling automotive brands, and one of the fastest growing brands in the world. With fuel solutions that go from "gas-friendly to gas-free," Chevy has nine models that get 30 miles per gallon or more on the highway, and offers three hybrid models. More than 2.5 million Chevrolets that run on E85 biofuel have been sold. Next year, Chevrolet will offer the Chevy Volt, an extended range electric vehicle that will travel up to 40 miles without using any gas at all. Chevy delivers expressive design, spirited performance and provides the best value in every segment in which it competes. More information on Chevrolet can be found at www.chevrolet.com.

GM Confirms Engine for Chevy Volt and Cruze Will Be Built in Existing Flint, Mich. Plant

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General Motors has confirmed today that it will still invest approximately $250 million to bring the 1.4-liter 4-cylinder Family 0 engine production to Flint, Mich. The engine capacity for the Chevy Volt and Cruze will be allocated to existing and available floor space in the company's Flint South engine plant located on Bristol Road.

Preparations to the Flint South plant for installation of new machinery and equipment will begin this Spring. Production of the 1.4-liter engines is targeted to begin in December 2010.

Production of Family 0 engines at Flint South will be GM's most flexible and competitive engine manufacturing lines in the world, with approximately 150 highly flexible stations that will allow production of multiple 4-cylinder engine families without retooling.

This means that GM will not invest in new floor space at this time due to current capital expenditure constraints and available floor space in existing facilities.

GM Presents U.S. Government Updated Plan for a Viable, Sustainable Company

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* Updated plan demonstrates GM's viability, despite further deterioration in global economy
* Accelerated cost reductions
* GMNA EBIT breakeven level lowered to U.S. industry levels of 11.5-12.0 million units
* Additional government support requested in U.S., Europe and Canada
* 'Fewer, better' products and brands, continued commitment to segment-leading fuel economy and advanced propulsion technology
* Aggressive and bold plan that demonstrates significant progress

WASHINGTON - General Motors (NYSE: GM) today presented the United States Department of Treasury with an updated plan that boldly responds to the weaker global auto market conditions and details the company's long term viability. The plan, which provides a comprehensive review of key aspects of GM's restructuring, is the first of two status reports required by the loan agreement signed by GM and the U.S. Treasury on Dec. 31, 2008.

The plan submitted today addresses the key restructuring targets required by the loan agreement, including a number of the critical elements of the turnaround plan that was submitted to the U.S. government on Dec. 2, 2008. Among these are: U.S. market competitiveness; fuel economy and emissions; competitive labor cost; and restructuring of the company's unsecured debt. It also includes a timeline for repayment of the Federal loans, and an analysis of the company's positive net present value (NPV).

The plan also details the future reduction of GM's vehicle brands and nameplates in the U.S., further consolidation in its workforce and dealer network, accelerated capacity actions and enhanced manufacturing competitiveness, while maintaining GM's strong commitment to high-quality, fuel-efficient vehicles and advanced propulsion technologies.

GM's viability plan actions result in a projected GM North America (GMNA) earnings before interest and taxes (EBIT) breakeven point of 11.5-12.0 million units in the U.S., compared to the 12.5-13.0 million unit range indicated in the Dec. 2, 2008 plan. The operating and balance sheet improvements outlined in GM's viability plan are forecasted to result in a significant enterprise value and positive net present value, positive adjusted EBIT in 2010 and positive operating cash flow for its North American operations in the same year.

Overall adjusted operating cash flows are expected to approach breakeven levels in 2011, and improve to more than $6 billion in the 2012-2014 period, reflecting both the full effect of GM's global restructuring initiatives and recovering industry volumes.

GM's need for government support was driven by the global financial market crisis, dramatically weaker economy and the resulting precipitous decline in vehicle demand. These conditions have impacted the entire auto industry, which in the U.S. is down approximately 40 percent from its peak in 2005, to the lowest per capita sales rate in 50 years. Though the impact has been most severe in the U.S. and Western Europe, automakers around the world are reporting large losses, with many seeking government assistance to weather the downturn.

Following the steep decline in U.S. industry sales in December 2008 and January 2009, GM responded by further lowering its forecast for 2009 U.S. industry sales to 10.5 million units (57.5 million units globally) for viability planning purposes. These industry planning volumes are more conservative than those being used by most other industry sources.

"The U.S. and global auto industries are facing times of unprecedented challenge," said GM Chairman and CEO Rick Wagoner. "These conditions dictate that we must take very tough actions to accelerate GM's restructuring efforts. We've made a lot of progress since the plan we submitted on December 2, 2008, and we have more to do before March 31. The plan we delivered today to the U.S. Treasury is aggressive but achievable. It provides a clear pathway for GM that continues to support American manufacturing and technology innovation, which are vital to the future of our nation's economy."

Since the original plan submission on Dec. 2, 2008, GM has made significant progress in a number of areas, including the following:

Dealers and Brands

* Evaluating Hummer sale options
* Completed strategic review of global Saab business and sought buyers for the business
* Saturn review complete; sale or spin-off possible; if not, phase out the brand at the end of current product lifecycle
* Further reduction in model nameplates
* Accelerated consolidation of GM's dealer network

Cost Competitiveness

* Further reduction in U.S. manufacturing capacity beyond Dec. 2 targets
* Significant progress with the UAW to address labor cost competitiveness
* Special hourly attrition program, salaried employment reductions
* Canada restructuring discussions advancing
* Engaged with European labor partners to achieve $1.2 billion in cost reductions

Balance Sheet

* Term sheets exchanged with UAW and bondholder committee advisors
* Initiated bond exchange negotiations with bondholder committee advisors
* UAW and bondholder committee advisors conducting extensive due diligence

Building on progress GM has already made, the company is taking a number of additional actions to reduce costs, streamline its business and improve its competitive position.

Marketing and Revenue Improvement

In the U.S., GM will focus on its core brands; Chevrolet, Cadillac, Buick and GMC. Pontiac will serve as a focused brand with fewer entries, within the Buick-Pontiac-GMC channel. GM will have a total of 36 nameplates in 2012, down 25 percent from 2008 levels. The plan also provides additional detail on the Hummer, Saturn and Saab brands.

GM expects to make a decision to sell or phase out the Hummer brand by Mar. 31, with a final resolution expected no later than 2010.

GM has conducted a strategic review of the global Saab business and has offered it for sale. Given the urgency of stemming sizeable cash demands associated with Saab operations, GM is requesting Swedish government support prior to any sale. The company has developed a specific proposal that would have the effect of capping GM's financial support, with Saab's operations effectively becoming an independent business entity Jan. 1, 2010. While GM hopes to reach agreement with the Swedish government, the Saab Automobile AB subsidiary could file for reorganization as early as this month.

Saturn will remain in operation for the next several years, through the end of the planned lifecycle for all Saturn products. In the interim, if Saturn retailers or other investors present a plan that would allow a spin-off or sale of Saturn Distribution Corporation, GM would be open to any such possibility. If a spin-off or sale does not occur, GM plans to phase out the Saturn brand at the end of the current product lifecycle.

GM's dealer count is also projected to be further reduced, from 6,246 in 2008 to 4,700 by 2012, and to 4,100 by 2014. Most of this reduction will take place in metro and suburban markets where dealership overcapacity is most prevalent. The result will be a smaller, but healthier GM dealer network.

Technology/Regulation Compliance

As indicated in the Dec. 2, 2008 plan, GM is moving ahead aggressively with plans to improve the fuel efficiency of its vehicles and develop a broad range of advanced propulsion technologies. The company is investing significantly in alternative fuel and advanced propulsion technologies in the 2009-2012 timeframe, supporting the expansion of GM's hybrid offerings and development of the Chevrolet Volt's extended-range electric vehicle technology.

For example, GM in January announced construction of a new U.S. manufacturing facility to build lithium-ion battery packs for the Volt. Lithium-ion batteries are an essential technology for advanced hybrids and electrically driven vehicles, and an important energy storage technology for other applications. GM has also committed to increasing its number of hybrid models to 14 by 2012, and to making more than 60 percent of its fleet alternative-fuel capable.

The investments in this restructuring plan will allow GM to become a long-term global leader in the development of fuel efficient and advanced technology vehicles. In doing so, the company will contribute to the development of this country's advanced manufacturing capabilities and support the growth of "green" industries in the U.S.

Cost Reduction and Operational Actions

In order to improve capacity utilization and cost competitiveness, GM has consolidated its manufacturing footprint considerably by closing 12 manufacturing facilities in the U.S. between 2000 and 2008. Given the current very difficult market conditions, GM will close an additional 14 facilities by 2012, five more than were included in the Dec. 2, 2008 plan.

Agreements with the UAW concerning several items have been completed and are now being implemented. First, a special attrition program has been negotiated to assist restructuring efforts by reducing excess employment costs through voluntary attrition of the current hourly workforce. Second, the UAW and GM's management have suspended the JOBS program. The program provided full income and benefit protection in lieu of layoff for an indefinite period of time. In addition, GM and the UAW have reached a tentative agreement relative to additional wage and benefit changes.

GM's management estimates that these competitive improvements will further substantially reduce GM's labor costs and represent a major move to close the competitive gap with U.S. transplant competitors. In addition, GM and the UAW have agreed to improve competitive work rules, which will also significantly reduce labor costs.

While these changes materially improve GM's competitiveness and help the company realize a substantial portion of the labor cost savings targeted in the financial projections, further progress will be required to achieve the full targeted savings. GM plans to report these changes to the U.S. Secretary of Labor, who must certify GM's competitiveness relative to the U.S. transplants.

Outside of the U.S., GM has accelerated restructuring plans for its Canadian, European and Asia-Pacific operations, all of which will be funded from sources outside the U.S.

Canada - Discussions are well advanced with the Canadian Federal and Ontario governments regarding long-term financial assistance to execute the restructuring actions necessary for long-term viability and with the Canadian Auto Workers (CAW) union on achieving competitive labor costs. The CAW has committed to achieving an hourly cost structure that is consistent with what is ultimately negotiated with the UAW.

Progress has also been made with the Canadian Federal and Ontario governments toward an agreement focused on maintaining proportional levels of manufacturing in Canada and on providing GMCL with a level of long-term financial assistance that is proportional to the total support provided to GM by the U.S. government. GMCL is continuing dialogue with its unions and the Canadian government with a target to finalize both agreements in March 2009.

GM remains optimistic both agreements can be completed by that time, which would enable GMCL to achieve long-term viability and enhance the value of GM. In the event that an agreement cannot be reached, GM will be required to reevaluate its future strategy for GMCL since it would not be viable on a standalone basis.

Europe - Europe is a highly competitive environment that is unprofitable for many vehicle manufacturers, and has a relatively costly restructuring environment. GM has engaged its European labor partners to achieve $1.2 billion in cost reductions, which include several possible closures or spinoffs of manufacturing facilities in high cost locations. In addition, GM is restructuring its sales organization to become more brand focused and better optimize its advertising. GM is also in discussions with the German government for operating and balance sheet support. A sustainable strategy for GM's European operations may include support from partnerships with the German government and/or other European governments. The company expects to resolve solvency issues for its European operations prior to Mar. 31, 2009.

Asia-Pacific - In light of current market conditions, GM is reconsidering the pace of its expansion in the Asia Pacific region. As such, some of the proposed capacity expansion projects and product programs in the region are no longer financially feasible and will not proceed without financial support from either the respective governments or from other partners. GM is holding discussions with its stakeholders to address the required support.

Capitalization

As outlined in the GM viability plan, approximately $27 billion in unsecured public liabilities currently on the company's balance sheet will be converted to a combination of new debt and equity, for a net debt reduction of at least $18 billion.

Negotiations are progressing with advisors of the ad hoc bondholder committee. Term sheets have been exchanged and due diligence regarding GM's restructuring has commenced. The company anticipates that the bond exchange offer will commence in late March, consistent with requirements in the U.S. Treasury loan documents. Under the term sheet proposal, a substantial majority of the pro-forma equity in GM would be distributed to exchanging bondholders and the UAW VEBA.

Discussions with representatives of the UAW VEBA have also been progressing, and due diligence is also proceeding with respect to reaching agreement to convert at least half of future VEBA payments to equity. A draft term sheet has been provided to the UAW, and they have indicated their desire to discuss the VEBA situation with government officials prior to signing any such term sheet. Closing of the conversion of VEBA obligations and unsecured debt to equity should be complete in May of this year.

Government Funding

To complete its aggressive restructuring and fund its ongoing operations amid an uncertain economic environment, GM is requesting the U.S. government to consider funding the company with a combination of secured term loans, revolving credit, and preferred equity.

In the Dec. 2 submission, GM indicated that under a U.S. downside volume scenario, the company would need funding support of approximately $18 billion. In addition, GM assumed that the $4.5 billion U.S. secured revolver credit facility would be renewed when it matures in 2011.

In the current baseline forecast, near-term industry volumes are similar to the December 2 downside scenario, and so GM's forecast indicates the company will need the $18 billion that was requested in December. In addition, based on current credit market conditions, it cannot be assumed that the company will be able to rollover the $4.5 billion revolver in 2011.

Therefore, GM is requesting federal funding support of $22.5 billion under its current baseline industry volume scenario. If the U.S. industry deteriorates further, a scenario depicted in the company's new, lower downside volume scenario with U.S. industry volume of 9.5 million units in 2009 and 11.5 million units in 2010, GM would require further federal funding, estimated currently at an additional $7.5 billion, which could bring total Government support up to $30 billion by 2011. Under the company's baseline outlook, repayment of federal support is expected to begin in 2012.

Additional financial support might be required in 2013 and 2014 if GM has to make contributions to our U.S. pension funds. In an update to the Dec. 2, 2008 submission, recent valuations indicate that GM's U.S. pension plans are currently under-funded as of Dec. 31, 2008. At this point, it is premature to conclude whether the company will need to make additional pension contributions, as the funded status of the pension plan is subject to many variables, including asset returns and discount rates. GM is currently analyzing its pension funding strategies.

During 2009-2014, GM also is requesting funding support from the governments of Canada, Germany, the United Kingdom, Sweden, and Thailand, and has included an estimate of $6 billion in funding support by 2010 to provide liquidity specifically for GM's operations in these countries.

Finally, the plan submitted today discusses the issue of bankruptcy as a potential option for restructuring, concluding it would be a highly risky, extremely costly and time-consuming process. This reaffirms management's position that bankruptcy is not in the best interests of GM or its stakeholders. The overriding risks are the significant impact a bankruptcy would have on the company's revenue stream and the resulting huge debtor-in-possession funding support that would be required from the government, as such funding is not available from traditional sources in today's market conditions. Accordingly, accomplishing GM's restructuring out of court remains by far the best approach for all constituents.

"Our viability plan requires significant sacrifices from all GM stakeholders: management, employees, unions, suppliers, dealers, investors and bondholders," Wagoner said. "But these are the kind of actions we need to take to survive the current industry crisis, and position GM for sustainability and success. This plan, in effect, signifies the reinvention of General Motors for the 21st century. We are working non-stop to put this plan into action, and we greatly appreciate the support and encouragement we continue to receive as we take these important steps toward viability. "

GM's leadership team will continue to work with its key stakeholders and the newly formed Presidential Task Force on Autos as it proceeds with its restructuring. In accordance with the loan agreement, GM will submit its second progress report to the U.S. Treasury on March 31. This progress report will be the basis for the Task Force to issue a 'Plan Completion Certificate' to Congress, which confirms GM's long-term viability.

EcoCAR Teams Roll Out Architectures for 'Green' Vehicle of the Future

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Student engineers participating in EcoCAR: The NeXt Challenge, completed a major milestone in their three-year quest to win the competition by unveiling their vehicle architectures at the Washington Auto Show. The 17 unique designs provide a glimpse into the future of green vehicle technology solutions and embrace innovations ranging from on-board hydrogen fuel cells to all electric vehicles.

EcoCAR, which is sponsored by the U.S. Department of Energy (DOE) and General Motors (GM), as well as the Government of Canada, the California Air Resources Board and other government and industry leaders, provides invaluable experience and training to the next generation of engineers developing future clean vehicle technology solutions.

"These students represent the future in automotive engineering, and the EcoCAR Challenge is providing them with the hands-on training and experience they need to prepare for advanced technology vehicle engineering," said David Rodgers, Deputy Assistant Secretary for Energy Efficiency at the DOE. "These student designs are innovative and ingenuous. Rarely do we have the opportunity to compare such a diverse range of advanced technology vehicles with so much promise."

The student teams have worked tirelessly to develop the architectural concepts that will not only meet the competition criteria, but also represent their vision for their 'EcoCAR' of the future. Students were encouraged to explore a variety of solutions including hybrid, plug-in hybrid, fuel cell, electric, and extended range electric vehicles. Each design is unique, and will take on a life of its own over the next few years. The 17 EcoCAR designs announced today were as follows:

• Extended Range Electric Vehicles (EREV) - Eight of the EcoCAR teams, including
Embry Riddle Aeronautical University, Mississippi State University, North Carolina State University, Ohio State University, Pennsylvania State University, University of Wisconsin, University of Victoria and Virginia Tech chose to design Extended Range Electric Vehicles, which, like GM's Chevy Volt, demonstrate full performance with an electric powertrain for all electric driving and an optimized combustion engine that can extend the range of the vehicle with its on-board fuel storage. The EcoCAR Challenge teams that selected an EREV as their architecture will use either B20 or E85 to extend the range of their electric vehicles. B20 is a blend of 20% biodiesel and 80% petroleum diesel and E85 is a blend of 85% ethanol and 15% gasoline.

• Plug-In Hybrid Electric Vehicles (PHEV) - Six of the seventeen EcoCAR teams, including
Georgia Tech, Howard University, Michigan Tech University, Rose-Hulman Institute of Technology, Texas Tech, and West Virginia University, have designed Plug-In Hybrid Electric Vehicles which are constructed with a large lithium ion battery. The battery can be recharged by plugging into the wall and the vehicle may operate without using the engine at all. Once the plug-in range of the battery is depleted the vehicle can still operate as a regular hybrid. The architectures will use either B20 or E85 to extend the range of the vehicles.

• Full Function Electric Vehicle (FFEV) - Only one team,
University of Ontario Institute of Technology (UOIT) chose to design a Full Function Electric Vehicle, which has an all-electric motor powering its drive train and has over 100 miles of range. It stores energy in batteries that can be charged using a home electrical outlet.

• Fuel Cell Plug-in Hybrid Electric Vehicle (FCPHEV) - Two of the seventeen EcoCAR teams, including
University of Waterloo and Missouri University of Science and Technology, have designed a Fuel Cell Plug-in Hybrid Electric Vehicle which uses an onboard hydrogen fuel cell to either propel the vehicle or recharge a battery pack. The battery pack can be charged using a home electrical outlet. The FCPHEV uses significant battery energy before relying on the fuel cell to extend the range of the vehicle.

While each of the 17 EcoCAR designs is unique, there are common attributes including:

• All of the vehicles have plug-in capability, which can significantly reduce on-road petroleum consumption.
• All of the designs use state-of-the-art lithium ion battery technology, so the vehicles are able to store more electric energy in smaller, lighter packages.
• All of the vehicles use a renewable energy source that displaces petroleum consumption, which significantly reduces the amount of greenhouse gases emitted from the vehicle's tailpipes.
• All of the EcoCAR team architectures must retain the safety and real-world performance characteristics of production vehicles that consumers demand.

For more information on the announcement, please visit: http://www.green-garage.org.

At the end of the competition EcoCAR vehicles will be judged on a number of criteria including efficiency, environmental impacts, performance, consumer appeal, safety, quality of workmanship, ride quality, noise and vibration. They will also present numerous aspects of their EcoCAR work such as mechanical, control, and electric engineering accomplishments to judging panels consisting of industry and government subject matter experts.

"Working with these bright young engineers as they grapple with the trade-offs between performance, efficiency, emissions and utility is very valuable for GM because it helps prepare them for real careers in the industry," said Britta Gross, manager, Hydrogen and Electrical Infrastructure Commercialization for General Motors. "This isn't a just a contest; this is about 17 extremely innovative teams of students across North America making a difference for generations to come."

"The designs of these students remind us of the depth and creativity of the human resources that we can count on as we drive toward a new generation of green vehicle technologies," said the Honourable Lisa Raitt, Canada's Minister of Natural Resources. "Competitions like EcoCAR are a wonderful showcase for the talent and ingenuity of these students, and they take us another step closer to realizing the economic and environmental potential of these technologies."

Background:

EcoCAR is a three-year competition that builds on the 19-year history of DOE advanced vehicle technology competitions by giving engineering students the chance to design and build advanced vehicles that demonstrate leading-edge automotive technologies. During the program, General Motors will provide production vehicles, vehicle components, seed money, technical mentoring and operational support. The U.S. Department of Energy and its research and development facility, Argonne National Laboratory, will provide competition management, team evaluation and technical and logistical support. Through this important partnership between government and industry, EcoCAR aims to inspire and support the next generation of scientists and engineers to unite around the common goal of sustainable mobility.

General Motors Outlines Roadmap for Cities to Plug Into the Chevrolet Volt Electric Vehicle

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• Plug-in-ready communities key to commercializing electric vehicles
• Next phase of getting the Volt ready for market will include communities such as Washington, D.C., San Francisco and other early-adopter markets
• GM and a broad group of utilities working together to establish infrastructure and accelerate the commercialization of plug-in electric vehicles

WASHINGTON - General Motors today outlined a comprehensive plan of action to help communities get ready for plug-in electric vehicles such as the upcoming Chevrolet Volt. GM announced details of the plan at the Washington Auto Show.

"Collaborating with communities such as San Francisco and metropolitan areas such as Washington, D.C. - where there's already an interest in plug-in vehicles - is another important step toward raising customer awareness of the environmental and economic benefits of vehicles such as the Volt," said Ed Peper, GM North America vice president, Chevrolet.

General Motors is working with key stakeholders in cities such as San Francisco to develop policies and enablers to accelerate the transition to plug-in electric vehicles. GM will undertake similar efforts around the country in communities such as Washington, D.C. These actions will help ensure the early success of the Chevrolet Volt - which hits the market next year - and other plug-in vehicles. Stakeholders that are key to establishing plug-in-ready metropolitan areas and regions include:

• State, city and county governments
• Electric utilities
• Regulators/public utility commissions
• Permitting and code officials
• Clean Cities coalitions
• Local employers
• Universities
• Early electric vehicle adopters

"Cities have an indispensable role in making plug-in vehicles successful," said San Francisco Mayor Gavin Newsom. "Here in San Francisco, we are acting now to make sure the charging infrastructure will be available to support these vehicles as soon as they are ready for sale, and we are working with other cities in the region to make the Bay Area a thriving market for electric transportation."

Challenges that need to be addressed include consumer incentives to make this early technology more affordable; public and workplace charging infrastructure; consumer-friendly electricity rates and renewable electricity options; government and corporate vehicle purchases; supportive permitting and codes for vehicle charging; and other incentives such as high-occupancy-vehicle (HOV) lane access.

GM is making great strides toward bringing the Volt from concept to the showroom. More than 30 prototype vehicles powered by lithium-ion battery packs are undergoing rigorous testing at GM's Proving Ground in Milford, Mich. In addition, last month at the North American International Auto Show in Detroit, GM announced it will manufacture the Volt battery packs in the United States.

"The Chevy Volt is truly coming to life, but preparing the market for electric vehicles also requires capable partners from outside the auto industry," said Peper. "Momentum is building as governments, technology companies, communities and universities are increasingly working together to prepare the market for electric vehicles."

Several recent positive developments in this regard include:

• Last October, the federal government approved a $7,500 tax incentive for consumers of plug-in electric vehicles such as the Chevy Volt.
• In November, the California cities of San Francisco, San Jose and Oakland announced a plan for plug-in vehicle infrastructure, incentives and enablers.
• A new Michigan law expedites the development of advanced battery manufacturing and research capabilities in the state.

GM is also helping to pave the way to plug-in commercialization on several other fronts, including:

• Working with the Electric Power Research Institute (EPRI) and a coalition of more than 40 utilities to solve challenges and accelerate the commercialization of plug-in electric vehicles.
• Playing a lead role in helping to create Society of Automotive Engineers (SAE) standards for the vehicle charging interface.

"We know plenty of work still remains, both within and outside of GM," said Peper. "But today's and other recent announcements underscore the comprehensive work being done to bring the Chevrolet Volt and other electrically driven vehicles to market - and they also highlight why we are so optimistic about the ultimate success of the Volt."

General Motors Corp. (NYSE: GM), one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 252,000 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. 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' Global Vice President of Design to be Awarded Automotive Hall of Fame Distinguished Service Citation

Image via WikipediaEdward T. Welburn, GM's Vice President of Global Design, will receive the Distinguished Service Citation from the Automotive Hall of Fame, January 25, at the National Automobile Dealers Association meeting in New Orleans. With this prestigious Distinguished Service Citation, the Automotive Hall of Fame recognizes an individual's significant contribution to the auto industry.

"I am honored to be receiving this award for doing a job that I enjoy so much,” says Welburn. “I am proud to lead such a creative team that continues designing award-winning cars and trucks that our customers love.”

Welburn was appointed GM vice president, global design, on March 1, 2005. He had been vice president of design, GM North America, since October 1, 2003, when he became only the sixth design leader in GM history. As vice president of global design, Welburn is responsible for interior and exterior design development of all General Motors cars and trucks. He heads a team of over 1,400 men and women operating in 11 design centers in eight countries around the world.

Under his direction, GM has walked away from the North American International Auto Show (NAIAS) in Detroit with the coveted 2007 Car and Truck of the Year awards for the Saturn Aura and Chevrolet Silverado, the 2008 Car of the Year award for the Chevrolet Malibu, the 2008 Motor Trend Car of the Year for Cadillac CTS, and the 2008 Eyes on Design awards for both the CTS-V and CTS Coupe Concept. In addition, AutoWeek named the 2006 Chevrolet Camaro Concept Editors’ Choice Best in Show Award.

Most recently, the Cadillac Converj Concept Car, revealed on January 11, 2009 at the North American International Auto Show won the Eyes on Design Award, AutoWeek’s Best Concept Award as well as the 2009 Detroit News Readers’ Choice Award for Best Concept.

Also under Welburn's leadership, GM designed and developed the revolutionary Chevy Volt, the world's first extended-range electric vehicle whose advanced technology and aerodynamic design enable it to drive up to 40 miles without using a drop of gasoline or producing emissions. The Chevrolet Volt was awarded the North American Specialty Concept Vehicle of the Year 2007 and the Most Significant Concept Vehicle of the Year at the Automotive Hall of Fame, 2007 MY. In addition, the Chevrolet Tahoe Hybrid won the 2008 Green Car of the Year award.

Welburn began his General Motors career in 1972 as an associate designer assigned to the Advanced Design Studios and has held several significant leadership positions within the General Motors Design organization since then.

A native of Philadelphia, Welburn was born on December 14, 1950. He received a bachelor's degree in 1972 from the College of Fine Arts at Howard University in Washington, D.C., where he studied sculpture and product design.

Today, Welburn is General Motors key executive to Howard University and serves on the board of governors at the Cranbrook Institute of Science and on the board of directors of the LeMay Museum.

Welburn has received honors and special recognition from Rainbow PUSH, African Americans on Wheels Magazine, and Black Enterprise magazine. In 2004, he was named the Howard University Alumni of the Year. In May 2008, he received the Man of Excellence Award from the Michigan Chronicle and made the list of The Ebony Power 150: The Most Influential Blacks in America as recognized by Ebony magazine.

Chevrolet Volt Battery Packs Will Be Manufactured by General Motors in the United States

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• GM will establish the first lithium-ion battery pack manufacturing facility in the United States operated by a major automaker
• LG Chem has been selected to supply the lithium-ion battery cells for the Chevrolet Volt
• Advanced battery strategy strengthens GM's capabilities to develop hybrid and electric vehicles
• GM will open a new automotive battery lab - the largest of its kind - in the United States to further strengthen design, development and testing capabilities
• A partnership with the University of Michigan has been established to develop a specialized curriculum for battery engineers

DETROIT - The Chevrolet Volt, an extended-range electric vehicle that delivers up to 40 miles of gasoline- and emissions-free electric driving, will use battery packs manufactured in the United States by General Motors, Chairman and CEO Rick Wagoner announced at the North American International Auto Show.

GM will establish the first lithium-ion battery pack manufacturing facility operated by a major automaker in the United States to produce the Volt's battery pack system. It consists of lithium-ion cells that are grouped into modules, along with other key battery components.

The plant will be located in Michigan, subject to negotiations with state and local government authorities. Facility preparation will begin in early 2009, with production tooling to be installed mid-year and output starting in 2010.

"The design, development and production of advanced batteries must be a core competency for GM, and we've been rapidly building our capability and resources to support this direction," Wagoner said. "This is a further demonstration of our commitment to the electrification of the automobile and to the Chevrolet Volt - a commitment that now totals more than $1 billion."

The Volt's lithium-ion battery cells will be supplied by LG Chem. Compact Power Inc., a subsidiary of LG Chem based in Troy, Mich., will build battery packs for Volt prototype vehicles until GM's battery facility is operational. A joint engineering contract with Compact Power and LG Chem also has been signed to further expedite the development of the Volt's lithium-ion battery technology.

GM has been testing battery packs for the Volt, powered by cells from LG Chem, for the past 16 months. These tests - both on the road and in the lab - have provided invaluable insight into lithium-ion battery technology.

"Our selection of LG Chem was based on performance, production readiness, efficiency, durability and LG Chem's demonstrated track record of exceptional quality," Wagoner said. "At GM, we believe the technical strengths of LG Chem, combined with our own engineering and manufacturing expertise, will help position us as a key player in the development of electrically driven vehicles today and in the future."

GM's advanced battery strategy

"Our announcements are part of a comprehensive advanced battery strategy for GM that is expanding along two pathways," Wagoner said. "First, we're identifying core competencies - such as battery research, development and assembly - and integrating these fundamentals into our product development and manufacturing operations. We believe this will become a competitive advantage for GM, and will be critical to GM's long-term success. Secondly, we're building a roster of battery suppliers and academic experts from around the globe, and leveraging their specialized abilities to develop battery chemistries and cell designs, as well as future automotive battery engineers."

Key elements of GM's advanced battery strategy include:

• Opening the largest automotive battery lab in the United States (31,000 square feet / 3,251 square meters) that will be capable of testing new energy storage system technologies, as well as lithium-ion and nickel-metal hydride batteries, to accelerate the domestic development of advanced battery technology and lead GM's network of existing labs in Honeoye Falls, N.Y.; Warren, Mich.; Torrance, Calif.; and Mainz-Kastel, Germany. This new battery lab will be located in Michigan, subject to final negotiations with state and local authorities
• Continuing to ramp-up "in-house" battery-development capability by increasing the staff of GM's global hybrid, electric vehicle and advanced battery organization to several hundred engineers in 2009, including more than 200 currently dedicated to advanced battery technologies
• Joining with the University of Michigan to create a new automotive advanced battery lab in Ann Arbor, Mich., and a specialized curriculum within U of M's College of Engineering to develop automotive battery engineers
• Continuing to grow and establish a robust lineup of battery suppliers for cell development and manufacturing and battery integration expertise, with companies such as LG Chem, A123Systems, Hitachi Ltd., Compact Power and Cobasys
• Collaborating with government organizations and industry consortia, such as the U.S. Department of Energy; United States Council for Automotive Research; the United States Advanced Battery Consortium LLC; and Electric Power Research Institute to advance the development of hybrids, plug-ins and electric vehicles, and related electric infrastructure to support those vehicles

Energy alternatives and advanced technologies that reduce dependency on petroleum, improve fuel economy and reduce emissions are the keys to developing sustainable transportation. GM is pursuing several options to best meet the varied needs of customers around the world - from advanced gasoline, diesel and biofuel technology to electrically assisted vehicles such as hybrids, plug-in hybrids and - ultimately -electrically driven extended-range electric vehicles and hydrogen fuel cell vehicles. GM believes that electrically driven vehicles, based on battery and hydrogen fuel cell technology, offer the best long-term solution for providing sustainable personal transportation.

In June 2008, the GM Board of Directors approved the Chevrolet Volt program and Voltec™ propulsion system for production starting in late 2010. For trips of up to 40 miles, the Volt is powered by electricity from the grid and stored in its lithium-ion battery pack. Beyond 40 miles, a small engine-generator creates additional electricity to extend the range of the Volt several hundred additional miles. The development of the Volt's 16 kWh T-shaped lithium-ion battery, which is roughly 6 feet long (1.8 meters) and weighs nearly 400 pounds (181 kg), is key to the Volt's success. The production-intent design was revealed in September 2008.

General Motors Corp. (NYSE: GM), the world's largest automaker, has been the annual global industry sales leader for 77 years. Founded in 1908, GM today employs about 252,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 34 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. 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.

Chevrolet Volt

Making its European debut at Paris, the much-anticipated production version of the Chevrolet Volt delivers up to 60 kilometers of gasoline and emissions-free electric driving, with the extended-range capability of hundreds of additional kilometers.

"The Volt is symbolic of GM's strong commitment to the future," says Rick Wagoner, GM Chairman and CEO. "It features just the kind of technology innovation that our industry needs to respond to today's and tomorrow's energy and environmental challenges."

On the road, the Volt offers spirited driving performance in a remarkably quiet interior. More than 220 lithium-ion cells contained within the Volt's battery pack provide ample power. The Volt's electric drive unit delivers the equivalent of 150 hp/110 kW, 370 Nm of instant torque, and a top speed of 161 km/h. The lack of engine noise, combined with special sound-deadening materials, makes the Volt an extremely quiet vehicle to drive.

GM estimates that the Volt will cost about two euro cents per km to drive while under battery power, compared to 12 euro cents per km using gasoline priced at €1.50 per liter. For an average driver who drives 60 km per day (or 22,000 km per year), this amounts to cost savings of €2,200 annually. Using night-time electricity rates, GM estimates that an electrically driven kilometer in a Volt will be about one-sixth of the cost of a conventional gasoline-powered vehicle.

The Volt is expected to be built at GM's Detroit-Hamtramck manufacturing facility, subject to GM successfully negotiating satisfactory government incentives. Production is scheduled to begin late 2010 for models in the United States. Pricing has not been announced. Visit media.gm.com/volt for more information.

How Volt works:

Energy is stored on board in a 16-kWh, “T”-shaped lithium-ion battery pack. The battery pack powers the electric drive unit, which is capable of meeting full vehicle speed and acceleration performance while driving the car electrically for up to 60 kilometers (based on MVEG city cycle) without using a drop of gas. For longer trips, the Volt's on-board range-extending engine is used to drive an electric generator when the battery's energy has been depleted. The range extender, which can be powered by gas/E85 Ethanol, is able to generate additional electricity to power the car for hundreds of miles.