Advanced Carbon Fiber Nears Broad Automotive Use

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General Motors and Teijin Limited., a leader in the carbon fiber and composites industry, will co-develop advanced carbon fiber composite technologies for potential high-volume use globally in GM cars, trucks and crossovers.

The co-development pact signed today involves use of Teijin’s innovative carbon fiber reinforced thermoplastic (CFRTP) technology, a faster and more efficient way to produce carbon fiber composites that potentially could be introduced on mainstream vehicles. For Teijin, the arrangement could lead to widening its portfolio beyond specialty and high-end automotive carbon fiber applications.

“Our relationship with Teijin provides the opportunity to revolutionize the way carbon fiber is used in the automotive industry,” said GM Vice Chairman Steve Girsky. “This technology holds the potential to be an industry game changer and demonstrates GM’s long-standing commitment to innovation.”
To support the relationship, Teijin will establish the Teijin Composites Application Center, a technical center in the northern part of the United States early next year.

As carbon fiber is 10 times stronger than regular-grade steel yet only one-quarter of the weight, carbon fiber composites used as automobile components are expected to dramatically reduce vehicle weight. Consumers benefit from lighter weight vehicles with better fuel economy and all the safety benefits that come with vehicles of greater mass.

Teijin's proprietary breakthrough is its ability to mass-produce carbon fiber-reinforced thermoplastic components with cycle times of under a minute. Conventional carbon fiber-reinforced composites use thermosetting resins and require a much longer timeframe for molding.  This time factor has limited the use of carbon fiber in high-volume vehicles.

Teijin recently received a 2011 Global Automotive Carbon Composites Technology Innovation Award by Frost & Sullivan. The technology also was selected by ICIS Innovation Awards 2011 as the overall winner and the recipient of the Best Product Innovation award.

Increasingly, strict global environmental standards and fuel economy regulations have intensified the need to reduce vehicle mass by using lightweight materials in place of high-tension steel or aluminum.
The Teijin Group, which has identified automobiles as a key growth market, accelerated the new technology development through collaboration by the Teijin Composites Innovation Center and Toho Tenax Co. Ltd., where the mass-production technology for carbon fiber reinforced plastic components using thermoplastic resin was successfully developed.

“Teijin’s innovative CFRTP technology, which promises to realize revolutionarily lighter automotive body structures, will play an important role in GM’s initiative to bring carbon fiber components into mainstream vehicles,” said Norio Kamei, senior managing director of Teijin. “We believe our visionary relationship with GM will lead the way in increased usage of green composites in the automotive industry.”
The launch of any carbon fiber-intensive vehicle applications resulting from the relationship would be announced closer to market readiness. The agreement does not involve an exchange of equity between the companies.

GM Reaches Agreement to Sell Saab to Spyker

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General Motors and Spyker Cars NV today confirmed that they have reached a binding agreement on the purchase of Saab Automobile AB.

"Today’s announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM,” said John Smith, GM vice president for corporate planning and alliances.

“General Motors, Spyker Cars, and the Swedish government worked very hard and creatively for a deal that would secure a sustainable future for this unique and iconic brand, and we're all happy for the positive outcome,” Smith said.

As part of the agreement, Spyker intends to form a new company, Saab Spyker Automobiles, which will carry the Saab brand forward. The sale will be subject to customary closing conditions, including receipt of applicable regulatory, governmental and court approvals. Other terms and conditions specific to the sale will be disclosed in due time.

The Swedish government is at present reviewing the transaction and the related request for guarantees of a Saab Automobile loan that has been requested from the European Investment Bank. Assuming quick action, the transaction is expected to close in mid-February, and previously announced wind down activities at Saab will be immediately suspended, pending the close of the transaction.

“Throughout the negotiations, GM has always had the hope to find a solution for Saab that would avoid a wind down of the brand,” added Nick Reilly, president, GM Europe. “We’ve worked with many parties over the past year, including governments and investors, and I’m very pleased that we could come to such a good conclusion, one that preserves jobs in Sweden and elsewhere. GM will continue to support Saab and Spyker on their way forward.”

GM Invests $246 Million in Electric Motors and Hybrid Components creating jobs in Baltimore

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General Motors will invest approximately $246 million in electric motor and electric drive manufacturing including construction of a high volume electric drive production facility at the Baltimore Transmission plant that will begin to manufacture in 2013 electric motors for GM’s Two-mode Hybrid system. The plant will be the first electric motor manufacturing facility in the U.S. operated by a major automaker.

By bringing this capability to the U.S., GM will create approximately 200 jobs. Local and state incentives, along with the Recovery Act funding announced in August 2009 by the U.S. Department of Energy, are helping to make this facility expansion and job creation possible.

“Electric motors are the engines of the future,” Stephens said. “By designing and manufacturing electric motors in-house at Baltimore Transmission, we can more efficiently control the design, materials and production processes. It will also enable us to lower costs and improve performance, quality, reliability, and manufacturability of the electric motors we use in our vehicles.”

Stephens also noted the importance of the new technology to the nation’s and Maryland’s overall economic growth.

“Electric motors are driving the next wave of automotive growth,” Stephens said. “The expansion of the Baltimore plant will generate a significant influx of money and jobs into the greater Baltimore area, creating U.S.-based manufacturing jobs.”

Through job retention and creation, Baltimore Transmission, which opened in 2000, will employ close to 400 people.

Nationally, including immediate project jobs, manufacturing jobs and the impact on suppliers and local communities, the investment is estimated to retain or create about 1700 jobs.

“Ultimately this expansion, its direct economic impact, its contribution to GM’s capabilities, and its impact on the vehicles we drive will be a model of what a lean, energetic, creative General Motors is capable of doing and contributing, “ Stephens said.

GM Board Recommendation to Sell Majority Stake in Opel/Vauxhall to Magna International/Sberbank

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• GM to sell 55% stake in New Opel to Magna/Sberbank
• Agreement on new ownership structure signals fresh start for New Opel
• Employees to hold 10% stake in New Opel
• Government supports financing through additional state guarantees

Zurich. General Motors today announced that its Board of Directors supports a bid from the consortium of Magna International Inc. and Sberbank to buy a majority stake in its European Opel/Vauxhall operations.

Several key issues will be finalized over the next few weeks to secure the binding agreements, including the written support of the labor unions to support the deal with the necessary cost restructuring for viability and the finalization of a definitive financing package from the German government. The definitive agreements should be ready to sign within a few weeks, with closing to follow within the next few months. Under the deal, Magna/Sberbank will purchase a 55 percent stake in New Opel; GM will hold a 35 percent stake and employees will be provided a 10 percent stake.

“The hard work over the past two weeks to clarify open issues and resolve details in the German financial package brought GM and its Board of Directors to recommend Magna/Sberbank,” said Fritz Henderson, GM President and CEO. “We thank all parties involved in the intensive process of the last few months -- especially the German government -- for their continued support that enables this new venture. I’d also like to thank the Opel and Vauxhall customers for their continued loyalty. GM will continue to closely collaborate with Opel and Vauxhall to develop and produce more great cars, such as the new Insignia and the new Astra,” Henderson added.

The agreement will keep Opel/Vauxhall a fully integrated part of GM’s global product development organization, allowing all parties to benefit from the exchange of technology and engineering resources. The new ownership structure constitutes a new lean, efficient and independent organization for the Opel and Vauxhall brands. The current portfolio of Opel/Vauxhall cars and the models in the pipeline are a strong basis for future success.

Participating in GM’s global technology development and purchasing organizations secures important economies of scale for Opel/Vauxhall and other GM brands. For example, vehicles that represent new propulsion technologies, such as the Ampera extended-range electric vehicle, can only be brought to market in a joint effort.

“GM operates many joint ventures around the world and has proven in the past that this business model delivers the right balance of independence, innovation and synergies,” said John Smith, GM Group Vice President Business Development. “All parties will work hard to close the deal as soon as possible,” he added.

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.

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 Media Statement Regarding GM's Ownership Stake in NUMMI

"As part of its long-term viability plan, General Motors has decided that its ownership stake in the New United Motor Manufacturing Incorporated (NUMMI) joint venture with Toyota will not be a part of the 'New GM’. After extensive analysis, GM and Toyota could not reach an agreement on a future product plan that made sense for all parties. Accordingly, NUMMI will end production of vehicles for GM in August, and there are no future GM vehicles planned for the joint venture at this time. Given that, GM believes it is in the best interest of the ‘New GM’ and its stakeholders that we place our ownership interest in NUMMI in 'Old GM’. We have enjoyed a very positive and beneficial partnership with Toyota for the past 25 years, and we remain open tofuture opportunities of mutual interest.”

Michigan Plants Will Build GM's Future Small Car

General Motors selected its assembly plant in Orion Township, Mich. and stamping facility in Pontiac, Mich., to build its future small car, which will add to the automaker’s growing portfolio of U.S.-built, highly fuel-efficient cars, including the Chevrolet Cruze and Volt. Today’s announcement will restore approximately 1,400 jobs in total -- 1,200 at Orion Assembly and 200 at Pontiac Metal Center, Building # 14.

This decision is dependent on the successful outcome of ongoing economic incentive negotiations between GM and state and local government officials.

“Small cars represent one of the fastest-growing segments in both the U.S. and around the world,” said Troy Clarke, president of General Motors North America. “ GM will be the only automaker, foreign or domestic, to build small cars in the U.S . , and we believe Orion Assembly and Pontiac Stamping are well suited to deliver a high-quality, fuel-efficient car that competes with anything in the marketplace.”

A selection team comprised of leaders from several of GM’s functional areas, including manufacturing, labor relations and finance, made the final decision based on a specific set of criteria. Orion Assembly will be retooled and is anticipated to be a two-shift operation, building 160,000 cars annually - a combination of both small and compact vehicles.

“This is great news for our members at UAW Local 5960, Oakland County, and the State of Michigan, and shows the world the UAW can compete in the most competitive segment of the automotive industry,” said Cal Rapson, UAW Vice President and Director, UAW-GM Department. “My heart also goes out to our UAW members in Janesville, Wisc., and Spring Hill, Tenn. Our work will not be complete until all of our members displaced by the shrinking auto industry are returned to work. With today’s announcement, we can begin to restore hope that the worst of the times are behind us.”

Gary Cowger, Group Vice President of GM Global Manufacturing & Labor Relations added: “I would like to personally thank all of the key stakeholders involved in the review process, including state and local government officials. This vehicle segment is one of the toughest and most competitive in the world but with our recently modified agreement with the UAW and GM’s proven capability in efficient, flexible manufacturing, it is now possible for GM to produce these size vehicles in the U.S. in a cost-competitive and profitable way.”

As announced on June 1, Orion Assembly will be placed into standby capacity status in Sept. 2009. Pontiac Metal Center ’s Building #14 will be placed into standby capacity status in Dec. 2010. Pontiac Metal’s buildings #15 and #25 will close by Dec. 2010, or sooner depending on market demand. Timing for the retooling of the small car assembly and stamping plants is still under study, but we anticipate this prep work would begin in late 2010 in anticipation of the start of production in 2011.

Two other GM assembly plants in Spring Hill, Tenn. and Janesville, Wis. were also under consideration to build the future small car. Spring Hill will be placed in standby capacity status in Nov. 2009, as announced earlier this month. The plant could be brought online at some point in the future should GM require additional capacity due to increased market demand. Janesville was placed on standby capacity in May 2009 and will remain in that status.

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

General Motors Statement Regarding Discontinuation of Pontiac Vibe Production at NUMMI Facility

As part of its long-term viability plan and recent decision to phase out the Pontiac brand, General Motors has decided to discontinue production of the Pontiac Vibe by the end of August 2009. The Vibe is produced at the New United Motor Manufacturing Incorporated (NUMMI) facility jointly operated by GM and Toyota in Fremont, California. While no replacement for Vibe production has been determined, GM and Toyota remain in active discussions regarding potential future production at NUMMI.

Chevrolet builds 1,500,000th Corvette

At the June meeting of the Greater Atlanta Automotive Media Association, Karen Rafferty, Chevrolet Product Marketing Director, today announced the recent production of the 1,500,000th Corvette at GM Bowling Green Assembly.

"The 1.5 millionth Corvette is a great example of how Chevy is America's Brand," Rafferty said. "For nearly 60 years we have built America's Sports Car and this milestone is a solid proof point."

The 1.5 millionth Corvette, built on May 28, is a white convertible 3LT with red interior and black top (similar to the first, 500,000th and 1 millionth Corvettes built in 1953, 1977 and 1992 respectively). The first Corvette rolled off the assembly line on June 30, 1953.

Rafferty also announced pricing of the all-new 2010 Corvette Grand Sport. Pricing for the Grand Sport coupe is $55,720 and GS convertible is $59,530. Both prices include a $950 destination freight charge.

"The Corvette Grand Sport achieves a 0 - 60 time in less than four seconds, pulls 1.0g on the skid pad and still boasts an impressive 26 highway mpg," Rafferty said. "These numbers are unmatched by any of Corvette's competitors."

GM Statement Regarding Wind Down of Medium Duty Truck Production

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multiple potential buyers, General Motors has decided to wind-down its medium-duty truck operations. Production of the Chevy Kodiak and GMC Topkick medium duty trucks will cease by July 31, 2009.

General Motors, Penske outline proposed deal for purchase of Saturn

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General Motors Corp. and Penske Automotive Group today confirmed details of a proposed transaction under which Penske would acquire the Saturn brand. If completed, the deal would save more than 350 dealerships and 13,000 jobs at Saturn and its retailers in the United States, and would preserve the customer-focused Saturn brand.

The proposed transaction is part of GM’s rebuilding efforts outlined in the viability plan that was submitted to the U.S. government earlier this year. Under the terms in the memorandum of understanding, Penske would obtain the rights to the brand as well as certain other Saturn assets. GM would continue production, on a contract basis, of the Saturn Aura, Vue and Outlook.

“This is the combination of two iconic teams: Saturn and Penske,” said Saturn general manager Jill Lajdziak. “GM had the vision to create Saturn and has the desire to see it succeed in the future.”

“Saturn has a passionate customer base and outstanding dealer network,” said Roger Penske, chairman of Penske Automotive Group. “For nearly 20 years Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths.”

Saturn began selling cars in 1990 and has sold more than 4 million vehicles. More than 80 percent of those vehicles are still in operation, according to data from R.L. Polk. Saturn has regularly scored among the industry leaders for non-luxury brands in customer satisfaction surveys.

“There has been a groundswell of support for Saturn, with our retailers and owners urging us to save the brand,” said Lajdziak. “We heard their call loud and clear, and it inspired us as we worked to secure Saturn’s future.”

The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement will not be disclosed at this time.

General Motors Announces Preliminary Agreement To Sell HUMMER

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General Motors Corp. (NYSE: GM), announced it has entered into a memorandum of understanding (MoU) with a buyer for HUMMER, its premium off-road brand. This transaction is the result of GM's strategic review of the HUMMER brand and the company’s ongoing restructuring efforts.

The sale is expected to close by the end of third quarter of this year and is subject to customary closing conditions, including receipt of applicable regulatory approvals.

The deal is expected to secure more than 3,000 U.S. jobs in manufacturing, engineering and at HUMMER dealerships around the country. The transaction also includes plans by the investor to aggressively fund future HUMMER product programs. Under terms of the MoU, the identity of the purchaser and proposed financial terms of the agreement are not being released at this time.

“HUMMER is a strong brand,” said Troy Clarke, President of GM North America. "I’m confident that HUMMER will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker ."

As part of the proposed transaction, HUMMER will continue to contract vehicle manufacturing and business services from GM during a defined transitional time period. For example, under the proposed agreement, GM’s Shreveport Assembly plant would continue to contract assemble the H3 and H3T through at least 2010.

"GM has developed HUMMER into a globally recognized off-road brand,” said James Taylor, HUMMER chief executive officer. “The proposed agreement will enable us to continue that growth and maximize the brand’s potential through new, innovative off-road vehicles with improved efficiency and alternative fuel powertrains. Today’s announcement is great news for HUMMER’s current and future customers, dealers, suppliers and employees around the globe.”

Other terms and conditions specific to the sale are not being disclosed at this time. Citi acted as financial advisor to General Motors Corporation.

GM ANNOUNCES AGREEMENT WITH U.S. TREASURY AND CANADIAN GOVERNMENTS PROVIDING FAST TRACK TO COMPETITIVE FUTURE FOR 'NEW GM'

NEW GM, BUILT FROM COMPANY'S STRONGEST OPERATIONS, EXPECTED TO LAUNCH IN 60-90 DAYS UNDER NEW OWNERSHIP

GM FILES VOLUNTARY CHAPTER 11 TO IMPLEMENT '363' SALE AGREEMENT

GM IS OPEN FOR BUSINESS IN THE U.S. AND WORLDWIDE, HONORING ALL CUSTOMER COMMITMENTS

• Warranty, service and customer support continue uninterrupted, backed by the U.S. and Canadian governments
• Essential suppliers to be paid in the normal course
• Employees to be paid in the normal course
• Operations outside U.S. not included in court filing

DETROIT, June 1, 2009 - General Motors Corp. (NYSE: GM) today announced that it has reached agreements with the U.S. Treasury and the governments of Canada and Ontario to accelerate its reinvention and create a leaner, stronger "New GM" positioned for a profitable, self-sustaining and competitive future.

Pending approvals, the New GM is expected to launch in about 60 to 90 days as a separate and independent company from the current GM ("GM"), with two distinct advantages: it will be built from only GM's best brands and operations, and it will be supported by a stronger balance sheet due to a significantly lower debt burden and operating cost structure than before. The New GM will incorporate the terms of GM's recent agreements with the United Auto Workers (UAW) and Canadian Auto Workers (CAW) unions and will be led by GM's current management team.

The New GM will execute the key elements of its April 27 viability plan, along with additional initiatives, to achieve winning financial results by putting customers first, concentrating on adding to the company's line of award-winning cars and trucks through four core brands and continuing to invest in green, energy-saving technologies.

Under its plan, GM will sell substantially all of its global assets to the New GM. To implement the sale agreement, GM and three domestic subsidiaries have filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York, and the sale is subject to the approval of the Court. Because GM's sale of assets to the New GM already has the support of the U.S. Treasury, the UAW and a substantial portion of GM's unsecured bondholders, GM expects the sale to be approved and consummated expeditiously.

GM has asked the Court to approve a number of steps to protect current and new GM customers, ensure that its operations will continue uninterrupted during the court-supervised process, and provide for a smooth transition to the New GM.

• GM dealers will continue to service GM vehicles and honor GM warranties, and U.S. and Canadian government guarantees of manufacturers' warranties are designed to reassure consumers.

• GM will use its cash-on-hand and a new Debtor-in-Possession (DIP) financing of approximately $33 billion to: ensure an uninterrupted supply of goods and services and provide for other cash requirements prior to closing of the asset sale; fund liabilities to secured lenders; and provide contingency funding to handle any potential unexpected needs. Furthermore, in conjunction with the sale, the U.S. Treasury and the Canadian and Ontario governments will provide funds to administer the wind down of the remaining assets and the closing of the chapter 11 cases.

• GM employees worldwide will become part of the New GM.

"Today marks a defining moment in the reinvention of GM as a leaner, more customer-focused, and more cost-competitive company that, above all, can quickly generate winning bottom line results," said Fritz Henderson, GM president and CEO. "The economic crisis has caused enormous disruption in the auto industry, but with it has come the opportunity for us to reinvent our business. We are going to do it once and do it right. The court-supervised process we are pursuing provides us with powerful tools to accelerate and complete our reinvention, as well as strong safeguards for our customers and our business. We are focused on the job at hand, for the benefit of our customers, employees, dealers, suppliers, retirees, taxpayers, investors and other stakeholders.

"We recognize the sacrifices that so many have been asked to make as we have worked to reinvent GM and the automobile," said Henderson. "GM deeply appreciates the support and the demonstration of confidence in our future by President Obama, the Presidential Task Force on Autos, the Canadian and Ontario governments, American and Canadian taxpayers, the unsecured bondholders who are supporting the proposed sale transaction, the UAW and CAW and their leadership, and the men and women of GM, including our retirees. You have enabled us to carry out this vital transformation for the good of GM, our customers and the economy, and we are working to validate your trust each day.

"From day one, the New GM will be well-positioned to capitalize on the award-winning vehicles we have developed and launched during the past few years, and on our investments in exciting new technologies like the Chevy Volt, so that we can build and return value to our customers and to the millions who will have a stake in our success. The New GM will play a critical role in the future of the automobile, and assure that the U.S. has a strong stake in this rapidly changing global manufacturing industry," Henderson said.

Business operations continue globally without interruption

GM's North American manufacturing operations continues to monitor production output to make sure it aligns with market demand, and currently intends to ramp up manufacturing operations as market demand improves during the latter half of the year.

None of GM's operations outside of the U.S. are included in the U.S. court filings or court-supervised process, and these filings have no direct legal impact on GM's plans and operations outside the U.S. GM confirmed that all business operations are continuing without interruption in its Europe; Latin America, Africa and the Middle East; and Asia Pacific regions.

"Worldwide, GM dealers are open for business, offering competitive financing options on our award-winning vehicles, continuing to honor our industry-leading warranty coverage, and providing outstanding service," said Henderson. "Furthermore, the U.S. Treasury and the Canadian governments have issued a strong vote of confidence by backing GM's vehicle warranties."

GM has filed various "first day" motions with the Court to ensure the company's continued ability to conduct normal business operations. Upon Court approval, GM will be expressly authorized, among other things, to:

• Honor all obligations to customers and continue customer programs, including warranties, without interruption

• Respect our operating and financing agreements with GMAC, supporting continued wholesale financing for dealers and retail financing for customers

• Pay dealers' open accounts and continue warranty and incentive programs

• Pay essential suppliers and logistics providers for goods and services provided before and after the company's court filings

• Continue pay and benefits for employees and retirees; however, the amount of non-qualified pension for some executive retirees may be affected.

The New GM

GM's agreements with the U.S. Treasury, the Canadian and Ontario governments and the UAW and CAW, in addition to the support of a substantial portion of GM's unsecured bondholders, will enable the New GM to be a leaner, faster and more customer-focused enterprise, consistent with the vision, goals and plans of GM's enhanced operating plan announced April 27.

The New GM will:

• Focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketing support per brand

• Effectively close the competitive gap in active worker labor costs compared with transplant auto manufacturers

• More efficiently utilize U.S. capacity while increasing over time the percentage of U.S. sales manufactured domestically

• Feature lower structural costs enabling its North American region to break even (on an adjusted EBIT basis) at a U.S. total industry volume of approximately 10 million vehicles. This rate is substantially below the 15 to 17 million annual vehicle sales rates recorded from 1995 through 2007

• Achieve its lower structural costs in part by further reducing 2009 salaried employment in North America from its year-end total of 35,100 to approximately 27,200, and continuing to improve its balance sheet by reducing retiree benefits for salaried retirees and non-UAW hourly retirees

• Provide a higher level of customer service through a more focused U.S. network of approximately 3,600 dealers

• Continue and increase its investment and leadership in fuel economy and advanced propulsion technologies

Capital Structure of the New GM

A critical element of GM's reinvention is to achieve a significantly stronger and healthier balance sheet. On March 31, 2009, GM reported consolidated debt of $54.4 billion, along with additional liabilities, including an estimated $20 billion obligation to the UAW VEBA.

Under GM's agreements with the U.S. Treasury, the Canadian and Ontario governments, and the UAW and CAW, and with the support of a substantial portion of GM's unsecured bondholders, upon closing of GM's sale of assets to the New GM, the New GM's capital structure will be comprised of:

• Approximately $17 billion in total consolidated debt, including:
  • $6.7 billion of debt owed to the U.S. Treasury
  • $1.3 billion of debt owed to the Canadian and Ontario governments
  • $2.5 billion of notes issued to the new Voluntary Employee Beneficiary Association (New VEBA)
  • Approximately $6.8 billion of other, primarily international debt, but excluding Europe

• $9 billion of perpetual preferred stock with a 9 percent annual dividend, payable quarterly in cash, $2.1 billion of which will be issued to the U.S. Treasury, $0.4 billion of which will be issued to the Canadian and Ontario governments and $6.5 billion of which will be issued to the New VEBA

• Common equity, 60.8 percent of which will be owned by the U.S. Treasury, 11.7 percent of which will be owned by the Canadian and Ontario governments, 17.5 percent of which will be owned by the New VEBA, and 10 percent of which has been reserved for GM for the benefit of the unsecured bondholders and other unsecured creditors of GM

• Warrants granted to the New VEBA to acquire newly issued shares in the New GM equal to 2.5 percent of its outstanding common equity

• Warrants granted to GM at closing to acquire newly issued shares in the New GM equal to 15 percent of its outstanding common equity, with various exercise prices and expirations

Other than the $8 billion of debt owed to the U.S. Treasury and the Canadian and Ontario governments by the New GM, all amounts owed by GM or the New GM to the U.S. Treasury and Canadian and Ontario governments would be equitized in exchange for the New GM securities described above, and no other debt will be owed by GM to the U.S. Treasury and the Canadian and Ontario governments.

GM Europe Restructuring

GM announced separately today, GM Europe has an agreement for €1.5 billion of bridge financing from the German government and a Memorandum of Understanding to partner with Magna International Inc. Under the agreement, the Opel/Vauxhall assets have been pooled under Adam Opel GmbH, with the majority of the shares of Adam Opel GmbH being put into an independent trust (the balance to remain with General Motors), while final negotiations with Magna proceed. Negotiations to close the agreement should take several weeks. Additional details will be available athttp://media.gm.com/eur/gm/en/.

New products and technologies on track

The New GM, with its strong financial base and best-in-class dealer network, will support a portfolio of award-winning vehicles, including the Chevy Malibu (2008 North American Car of the Year and J.D. Power and Associates' segment leader in its 2008 Initial Quality Survey), Cadillac CTS (Motor Trend Car of the Year) and its Buick brand (tied for 1^st place in J.D. Power and Associates' 2009 Vehicle Dependability Study). The New GM will have a number of key vehicle launches in 2009 and 2010, including:

• Chevrolet Camaro, a dramatic, moderately priced sport coupe with highway fuel economy of up to 29 mpg
• An all-new Buick LaCrosse premium midsize sedan
• The luxury midsize Cadillac SRX crossover and CTS Sport Wagon
• The Chevy Equinox and GMC Terrain, midsize crossovers with class-leading highway fuel economy of 32 mpg
• The Chevy Cruze, GM's new global compact car
• The revolutionary Chevy Volt, an extended-range electric vehicle that can travel up to 40 miles on battery power alone with the extended-range capability of more than 300 total miles.

"Our products are our future, and our lineup of new cars and crossovers are a great foundation for success," said Henderson. "The New GM is here to stay, and our brands position us to compete well in profitable segments with vehicles that are second-to-none."

GM also reaffirmed its commitment to improve the fuel efficiency of its vehicle fleet, meet or exceed new federal fuel economy and emissions regulations, and push ahead with advanced propulsion technology. GM will launch the Chevrolet Volt extended range electric vehicle in 2010, expects to have 14 hybrid models in production by 2012, and will have 65 percent of vehicles alternative-fuel capable by 2014.

"The New GM will become a long-term global leader in the development of fuel-efficient and advanced-technology vehicles," said Henderson. "In doing so, the New GM will contribute to the development of advanced engineering and manufacturing capabilities in the United States, which are critical to the future of the U.S. economy."

GM's primary bankruptcy counsel is Weil, Gotshal & Manges LLP. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsels. Cravath, Swaine, & Moore LLP is providing legal advice to the Independent Directors of GM. GM's restructuring advisor is AP Services LLP and its financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP.

More information about GM's chapter 11 cases is available at www.GM.com/restructuring.

Court filings and claims information are available at www.GMcourtdocs.com.

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

Image by Mike Licht, NotionsCapital.com via Flickr

• 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.

GM's HCCI Engine Technology Delivers Greater Efficiency Without A Spark

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General Motors’ initiatives for developing new, fuel-saving technologies have led its engineers to put the squeeze on gasoline – literally.

GM’s continuing development of homogenous charge compression ignition (HCCI) is pushing this promising, fuel-saving and emissions-reducing engine technology closer to production reality. An HCCI engine, when combined with other advanced technologies, provides up to 15 percent greater fuel economy than a comparable, non-HCCI engine by radically altering the combustion process.

“HCCI delivers enhanced fuel savings without sacrificing the performance consumers have come to expect,” said Prof. Dr. Uwe Grebe, executive director for GM Powertrain Advanced Engineering. “It is a great example of how GM is developing advanced engine technology for consumers that squeezes more miles per gallon of gas and reduces emissions.”

In general terms, the heat and pressure within an HCCI engine’s cylinders are used to ignite the air/fuel mixture without the aid of a traditional spark-generated flame – roughly analogous to the combustion process of a diesel engine. Heat is a necessary enabler for the HCCI process, so traditional spark ignition is used when the engine is cold to generate heat within the cylinders and instigate “auto-ignition” of the mixture.

More than a laboratory experiment, HCCI has been successfully demonstrated in prototype models in North America and Europe. Last spring, GM took the technology on the road, putting journalists and others in an HCCI-equipped Saturn Aura for real-world drives in Los Angeles, Washington, D.C., and New York. The vehicle featured the breakthrough of auto-ignition (HCCI) from idle to 60 mph, which significantly advances the benefits of HCCI and the viability for production.

The increase in the HCCI operating range of the prototype vehicle is the result of a patented mixed-mode calibration that includes pre-reacting fuel and exhaust gas in the cylinder to bolster the pressure and heat needed for auto-ignition.

The advantages and challenges of HCCI

HCCI’s efficiency comes from reduced pumping losses, burning fuel faster at lower temperatures and reducing the heat energy lost during the combustion process. Consequently, less carbon dioxide is released because the engine’s operation in HCCI mode is more efficient.

During HCCI mode, the engine approaches the efficiency of a diesel, but unlike a diesel, it requires only a conventional exhaust system. Diesel engines require more elaborate and more expensive exhaust “aftertreatment” to reduce emissions.

The success of HCCI development, to date, is tempered by challenges that must be overcome before it hits the primetime of production. Control of the combustion process over the wide range of operating conditions experienced in everyday driving is the greatest challenge, because unlike a conventional-ignition engine, HCCI’s combustion is not controlled by precisely timed spark events. Ensuring auto ignition at extreme temperatures and in the thinner air of high altitudes are the tallest hurdles to overcome.

“GM’s global HCCI team is working to refine the technology in the wide range of driving conditions experienced around the globe,” said Dr. Grebe. “By combining HCCI with other advanced gasoline engine and control technologies, we can deliver a good fuel savings value for consumers.”

General Motors and the College for Creative Studies on the lookout for next generation car designers

Car designers are inspired by everything around them. They often draw their inspiration from fashion, architecture, even furniture design. A trendy purse or shoes, a new office building, or a chair can trigger new ideas for the design of a seat or head or tail lamps.

This spring, nine mentors from General Motors and eight students from the College for Creative Studies (CCS), as part of the annual "You Make a Difference" program are volunteering their time and talent to help 112 students from 11 Detroit Public High Schools embrace their own inspirations to create cars of the future. The program was established to identify diverse talent, give young people exposure to vehicle design, and increase overall awareness of careers in art and design.

"The College is committed to preparing students with an interest in art and design for a future in the dynamic and growing creative professions," said Richard L. Rogers, president of CCS. "Programs like this are at the core of our mission at CCS and will increase the diversity of the College, other design schools and ultimately the design professions themselves while also contributing to the cultural vitality of Detroit and southeast Michigan."

Armed with sketching pads, pencils and real-life experience, the volunteer mentors are assigned to one public school for 12 weeks and work closely with art teachers to facilitate group presentations and provide individual instruction in sketching techniques. The students are asked to design their dream vehicle that would appeal to 17-25 year old, including sports cars, crossovers, vans and some eco-vehicles.

"Recruitment of new and diverse design talent is one of our top priorities. We need designers, sculptors and graphic artists that represent countries and cultures from around the world to bring their creativity and unique life experiences to enrich the design process," said Ed Welburn, Vice President of GM Global Design. "I believe partnerships like this are so important to our youth and to our future business."

Most of these high-school students identified are already interested in some type of graphic art, product or fashion design. Upon completion of this program,

a few will be invited to participate in Advanced Sketching Clinics this summer to further enhance their artistic abilities. Three students will receive continuing education credit for courses at CCS.

"The 'You Make a Difference' collaboration between General Motors,

College for Creative Studies, and the Detroit Public Schools has been a valuable asset to the DPS visual art students and staff," said Benjamin Pruitt, Sr., director, Office of Fine Arts Education for the Detroit Public Schools. "It has opened minds and raised awareness to the numerous career opportunities in automotive design and other related fields. It is certainly our hope that this joint effort will continue in the future."

The student's original work will be on display on May 21, 2009 at the College for Creative Studies during a public open house and reception from 4:30-6:30 p.m. in the Wendell W. Anderson Jr. Auditorium in the Walter B. Ford II Building. Students, parents, and teachers will be on hand to discuss their experiences along with GM and CCS mentors. This evening program will serve as recognition for their participation in the "You Make A Difference" program and provides an opportunity to offer congratulations as they move forward with the Advanced Sketching Workshops.

GM Reports 173,007 Deliveries in April

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• Total sales up 11 percent compared with March as spring selling season begins
• Chevrolet Silverado and GMC Sierra drive increase in full-size pickup market share compared with March
• Chevrolet Traverse sales of more than 8,200 drives GM's mid-crossover segment sales up 16 percent
• "Total Confidence" plan extended into May

DETROIT - General Motors dealers in the United States delivered 173,007 vehicles in April, down 34 percent compared with a year ago. However, when comparing GM's April sales with March, total volume was up 11 percent, or about 16,600 cars, crossovers and trucks, largely driven by a return to more normal volumes of fleet sales compared with a very weak first quarter. GM's car sales compared with March were up nearly 2,900 vehicles (4 percent), truck sales increased more than 9,500 vehicles (16 percent), and crossover sales were up nearly 4,200 vehicles (14 percent).

"From a retail standpoint, GM and the industry continued at about the same selling rate as February and March. We see that stabilization, along with a firming up of our fleet business and improvement in Silverado and Sierra sales, as an encouraging sign," said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. "We're pleased to see R.L. Polk information this week indicating that a majority of consumers plan to buy a vehicle in the next two years - that shows pent-up demand is building. With our full line-up of cars, crossovers, trucks and hybrids - and some very competitive incentive offers - we're well-positioned to meet this growing consumer demand in the months ahead. For example, we have more than 15,000 sold orders for the white-hot Chevy Camaro."

GM total truck sales (including crossovers) of 102,032 were down 28 percent and car sales of 71,775 were off 41 percent compared with a year ago.

GM's four core brands performed strongly compared with March. Total Chevrolet sales of more than 115,000 vehicles were up 22 percent; Cadillac sales of more than 8,300 vehicles increased 2 percent; GMC sales of more than 20,400 vehicles were up 7 percent; and Buick sales of nearly 9,000 vehicles were up 21 percent. Specifically, when April sales are compared with March:

• Driven by double-digit increases in Silverado, Tahoe, Traverse and HHR sales, Chevrolet trucks and crossovers were up 22 percent; Chevrolet cars were powered by Cobalt, Impala and Corvette sales, driving an increase of 21 percent.
• Cadillac trucks and crossovers were down 11 percent; however, STS and DTS sales hikes pushed Cadillac car volume up 7 percent.
• GMC trucks and crossovers increased 7 percent with Sierra and Yukon leading the way.
• The Buick Enclave saw a 17 percent increase in sales; while a double-digit increase in Lucerne sales pushed cars up 25 percent.

"We're hearing very positive feedback from dealers and customers, so we're keeping the rally going by extending the Total Confidence plan for Chevrolet, Buick, Pontiac, GMC and Saturn customers in May," LaNeve said. "More than 750,000 people visited our Total Confidence website in April, and about 70 percent of those folks came to us from third-party sites."

"We'd also like to see continued actions by the government to stimulate sales, such as the proposed scrappage program. The President's comments yesterday encouraging customers to buy American cars and trucks was also very positive. We have said many times that Americans should consider our products because they are the best. The economic advantages are a plus to that," LaNeve added. "The President restated our shared belief that GM will be a part of a strong and viable auto industry for many years to come, and customers should feel very comfortable buying our vehicles."

A total of 1,534 GM hybrid vehicles were delivered in the month, illustrating the wide range of hybrid product offerings available. GM offers the Chevrolet Malibu, Tahoe and Silverado, GMC Yukon and Sierra, Cadillac Escalade, Saturn Aura and Vue hybrids. So far, in 2009, GM has delivered 5,156 hybrid vehicles.

GM inventories dropped compared with a year ago. At the end of April, about 742,000 vehicles were in stock, down about 82,000 vehicles (or 10 percent) compared with last year. There were about 313,000 cars and 429,000 trucks (including crossovers) in inventory at the end of April. Inventories were reduced about 25,000 vehicles compared with March. Importantly, last week, GM announced that it would lower production by approximately 190,000 vehicles through the early part of the third quarter as it continues to reduce inventories to an expected level of about 525,000 vehicles by the end of July. The schedule for launch vehicles including the all-new Chevrolet Camaro, Buick LaCrosse, Cadillac SRX and GMC Terrain is being maintained so that customers will continue to see a full selection of new and launch vehicles in dealer showrooms.

Certified Used Vehicles

GM Certified Used Vehicles, Saturn Certified Pre-Owned Vehicles, Cadillac Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, combined sold 34,079 vehicles.

GM Certified Used Vehicles, the industry's top-selling certified brand, posted April sales of 28,722 vehicles, down 26 percent from April 2008. Saturn Certified Pre-Owned Vehicles sold 1,066 vehicles, down 8 percent. Saab Certified Pre-Owned Vehicles sold 493 vehicles, down 34 percent. However, two brands posted gains: Cadillac Certified Pre-Owned Vehicles sold 3,566 vehicles, up 0.03 percent and HUMMER Certified Pre-Owned Vehicles sold 232 vehicles, up 39 percent.

"GM's manufacturer-certified programs continue to offer a strong value for consumers and we are seeing some optimism in the market," said LaNeve. "In particular, our Cadillac CPO brand has been resonating with consumers and remains on a positive track. Not only do Certified Used Vehicles offer the largest selection in the industry, they also come with strong factory backed warranties, such as the 12-month/12,000 mile bumper-to-bumper warranty. Certified Used Vehicles offer the peace of mind in purchasing a durable and reliable vehicle."

In April, GM North America produced 171,000 vehicles (59,000 cars and 112,000 trucks). This is down 71,000 vehicles or 29 percent compared with April 2008 when the region produced 242,000 vehicles (128,000 cars and 114,000 trucks). (Production totals include joint venture production of 7,000 vehicles in April 2009 and 22,000 vehicles in April 2008.)

The region's 2009 second-quarter production forecast is set at 390,000 vehicles (172,000 cars and 218,000 trucks), which is down about 53 percent compared with a year ago. GM North America built 834,000 vehicles (382,000 cars and 452,000 trucks) in the second-quarter of 2008.

General Motors Adding More Fuel-Saving Direct Injection Engines For 2010

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The all-new, five-passenger 2010 GMC Terrain joins the rapidly growing list of vehicles with GM’s direct injected (DI) engines that use less fuel, make more power and produce fewer emissions. The Terrain brings to 18 the number of North American GM models that will feature DI in 2010 – more than any other manufacturer.

“Direct injection is a key component of GM’s Advanced Propulsion Technology Strategy that uses multiple technology pathways to achieve increased efficiency and the diversification of energy sources,” said Tom Stephens, vice chairman, Global Product Development. “Because there is no single solution, we’re applying advanced technology where it makes the most sense for customers in regard to fuel efficiency, performance and cost. The efficiency gain with direct injection represents a great technological value that customers can benefit from immediately.”

Both of the Terrain’s available engines – a new 2.4L four-cylinder and a 3.0L V-6 – come standard with DI, with 2.4L-equipped models estimated at 30 mpg on the highway (EPA certification pending). That puts GMC’s new crossover SUV at the top of its segment in highway fuel economy.

Additional new GM models with DI include the 2010 Buick LaCrosse luxury sedan, the sporty 2010 Chevy Camaro, the redesigned 2010 Cadillac SRX and the 2010 Chevy Equinox crossover. They contribute to GM’s global initiative that will see eight distinct DI engines offered in 38 vehicle models around the world next year.

“Direct injection is a near-term solution – along with hybrids and biofuels like E85 – that fits well within GM’s current portfolio, but our strategy envisions mid- and long-term powertrain solutions that will ultimately reduce vehicle emissions to zero, increase fuel efficiency dramatically and displace petroleum as the primary energy source,” said Stephens. “Vehicles like the 2011 Chevrolet Volt extended-range electric vehicle and our advanced fuel cell-electric prototypes are tangible examples of GM’s vision.”

GM’s DI lineup

The range of 2009 and upcoming 2010 GM models that offer the efficiency of direct injection includes the following – with additional models to be announced later:

Buick Enclave: This popular crossover offers an efficient 3.6L DI engine that delivers a class-leading EPA highway rating of 24 mpg (FWD models).

Buick LaCrosse: All-new for 2010 and going on sale this summer, the redesigned Buick LaCrosse will offer DI engines exclusively, including a 3.0L V-6 and 3.6L V-6.

Cadillac CTS and CTS Sport Wagon: The CTS sedan and new CTS Sport Wagon come standard with a 3.0L DI V-6 in 2010. Also available is a 3.6L high-feature DOHC V-6 engine that was named to Ward’s AutoWorld’s 2009 “Ten Best Engines” list for North America – for the second consecutive year. With the 3.6L DI engine, the CTS sedan is rated at 26 mpg on the highway.

Cadillac SRX: When it hits the street this summer, the redesigned 2010 SRX crossover will offer a 3.0L DI engine that is expected to deliver highway fuel economy in the mid-20s (testing is ongoing).

Cadillac STS: The STS uses a version of the CTS’ award-winning 3.6L DI V-6, giving this full-size sedan EPA-rated 26 mpg on the highway.

Chevrolet Camaro: Chevy’s iconic sports coupe is back, with a powerful 3.6L DI V-6 that turns out 304 horsepower (227 kW) and EPA-rated 29 mpg on the highway.

Chevrolet Cobalt SS: This sporty compact blends high performance with high efficiency; its 260-horsepower (194 kW) 2.0L turbocharged engine is EPA-rated at 30 mpg on the highway.

Chevrolet Equinox: Arriving in dealerships this summer, the redesigned 2010 Equinox will offer two DI engines – a 2.4L four-cylinder rated at 30 mpg and a 3.0L V-6. Consumers who drive the 2.4L-equipped Equinox 15,000 miles per year will save 134 gallons of fuel or about $270 to $400 annually (assuming gas prices of $2 or $3 per gallon), as compared to the 2009 Equinox.

Chevrolet HHR SS: Employing the same 260-horsepower (194 kW) 2.0L turbocharged four-cylinder DI engine as the Cobalt SS, the HHR SS model delivers 29 mpg in EPA-rated highway mileage.

Chevrolet Traverse: The 2009 model with its 3.6L DI engine enjoys best-in-class highway fuel economy of 24 mpg (FWD models) of any eight-passenger SUV.

GMC Acadia: An efficient 3.6L DI engine (similar to the Chevy Traverse, Buick Enclave and Saturn Outlook) contributes to this crossover’s class-leading EPA-rated 24 mpg (FWD models).

Pontiac Solstice GXP: A turbocharged, 2.0L DI engine delivers driving thrills and fuel-economy thrift, with an EPA highway rating of 28 mpg (manual-transmission model).

Saturn Outlook: This full-size crossover delivers downsized fill-ups, with its 3.6L DI V-6 rated at a class-leading 24 mpg (FWD models).

Saturn Sky Red Line: Equipped with the same turbocharged, 2.0L DI engine as the Solstice GXP, Saturn’s sporty roadster also delivers 28 mpg on the highway (manual-transmission model).

GM’s fuel-saving initiative

GM’s direct injection push is part of a larger effort to implement multiple fuel-saving technologies across its vehicle portfolio. Twenty models in GM’s 2009 lineup deliver EPA-rated highway fuel economy of 30 mpg or more – more than any other automaker.

GM’s non-hybrid models also rank first in highway fuel economy in both the midsize sedan and subcompact segments, with Chevrolet Malibu and Saturn Aura rated at 33 highway mpg; and Chevrolet Cobalt XFE and Pontiac G5 XFE rated at 37 highway mpg.

Additionally, GM offers more models with fuel-saving six-speed manual transmissions than any other manufacturer in North America. That contributes to GM’s 2009 domestic car and light truck lineups’ estimated fuel savings of 700 million gallons when compared with the 2008 lineup, during the life of the vehicles. That means a saving $1.4 to $2.1 billion in fuel costs, assuming gas prices of $2 to $3 per gallon. It’s estimated that GM’s 2010 lineup will add another 1.1 billion gallons of fuel savings and $2.2 to $3.3 billion, relative to the 2008 lineup.

GM and Segway Join Forces to Reinvent Urban Transportation

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General Motors Corp. and Segway today demonstrated a new type of vehicle that could change the way we move around in cities.

Dubbed Project P.U.M.A. (Personal Urban Mobility and Accessibility), GM and Segway are developing an electrically powered, two-seat prototype vehicle that has only two wheels. It could allow people to travel around cities more quickly, safely, quietly and cleanly - and at a lower total cost. The vehicle also enables design creativity, fashion, fun and social networking.

GM and Segway announced their collaboration, while demonstrating the Project P.U.M.A. prototype in New York City this morning.

"Project P.U.M.A. represents a unique solution to moving about and interacting in cities, where more than half of the world's people live," said Larry Burns, GM vice president of research and development, and strategic planning. "Imagine small, nimble electric vehicles that know where other moving objects are and avoid running into them. Now, connect those vehicles in an Internet-like web and you can greatly enhance the ability of people to move through cities, find places to park and connect to their social and business networks."

Trends indicate that urbanization is growing, and with that comes increased congestion and more competition for parking. Cities around the world are actively looking for solutions to alleviate congestion and pollution. Project P.U.M.A. addresses those concerns. It combines several technologies demonstrated by GM and Segway, including electric drive and batteries; dynamic stabilization (two-wheel balancing); all-electronic acceleration, steering and braking; vehicle-to-vehicle communications; and autonomous driving and parking. Those technologies integrate in Project P.U.M.A. to increase mobility freedom, while also enabling energy efficiency, zero emissions, enhanced safety, seamless connectivity and reduced congestion in cities.

"We are excited to be working together to demonstrate a dramatically different approach to urban mobility," said Jim Norrod, CEO of Segway Inc. "There's an emotional connection you get when using Segway products. The Project P.U.M.A. prototype vehicle embodies this through the combination of advanced technologies that Segway and GM bring to the table to complete the connection between the rider, environment, and others."

Project P.U.M.A. vehicles will also allow designers to create new fashion trends for cars, and to focus on the passion and emotion that people express through their vehicles while creating solutions that anticipate the future needs of urban customers.

The Project P.U.M.A. prototype vehicle integrates a lithium-ion battery, digital smart energy management, two-wheel balancing, dual electric wheel motors, and a dockable user interface that allows off-board connectivity. The result is an advanced and functional concept that demonstrates the capabilities of technology that exists today.

Built to carry two or more passengers, it can travel at speeds up to 35 miles per hour (56 kph), with a range up to 35 miles (56 km) between recharges.

Since the introduction of the Segway Personal Transporter (PT), Segway has established itself as the leader in the small electric vehicle space. Its approach to congestion and environmental challenges is balanced with a strong understanding of the functional needs of its customers, enabling them to do more with less. Segway has delivered more than 60,000 lithium-ion batteries to the market.

GM has been a leader in "connected vehicle" technologies since it introduced OnStar in 1996. Today, this on-board communications package connects six million subscribers in North America to OnStar safety and security services. GM has also pioneered vehicle-to-vehicle (V2V) communications systems and transponder technology. These and additional connected vehicle technologies could ultimately enable vehicles that don't crash and drive themselves.

"Imagine moving about cities in a vehicle fashioned to your taste, that's fun to drive and ride in, that safely takes you where you want to go, and "connects" you to friends and family, while using clean, renewable energy, producing zero vehicle tailpipe emissions, and without the stress of traffic jams," said Burns. "And imagine doing this for one-fourth to one-third the cost of what you pay to own and operate today's automobile. This is what Project P.U.M.A. is capable of delivering."