www.youtube.com/watch?v=bou8y2mmIyk

As we shared in our First Look, the refreshed 2013 Chevy Malibu was officially revealed at the 2011 New York Auto Show as well as the 2011 Shanghai Auto Show last month. In addition to the unveiling of the new look, Chevy surprised crowds with the announcement of the 38 mile-per-gallon Malibu ECO model. Both models are planned to go on sale in over 100 countries on six continents in early 2012.

Taking design influence from its Chevrolet brethren, namely the Equinox and Camaro, the new look of the Chevy Malibu improves upon its already sleek and sophisticated styling with refinement and a certain flare of sports car aggression. The new model receives a front end facelift, with a twin port grille and projector headlights reminiscent of a high-end luxury vehicle, as well as a much needed redesign of the rear end with Camaro inspired three-dimensional taillamps.

“The current Malibu has left an award-winning impression and changed the way people think about Chevrolet,” commented Susan Docherty, vice president of GMIO sales, marketing and aftersales. “This all-new Malibu delivers on the intangibles of today’s Malibu but gives customers even more: more style, fuel efficiency, content and features, craftsmanship, and dynamic capabilities rivaling high-end sedans.”, she added.

The new Chevy Malibu doesn’t simply differentiate from its predecessor visually. Built on General Motors Epsilon II architecture, the Malibu has a shorter wheelbase and is about 3 inches wider, giving it a stout, athletic stance. All models, except the ECO, are powered by a new 2.5-liter 4-cylinder engine that produces 190 horsepower and is mated to a standard 6-speed automatic transaxle. The Malibu ECO comes powered by a direct-injection version of the current 2.4-liter 4-cylinder, with a six-speed automatic supplemented by the light-hybrid eAssist system which boasts an EPA-rated 26 MPG city and 38 MPG highway. A surprising fact is that while the redesigned Malibu has a sporty appearance, the current V6 motor will not be available.

The Camaro inspired styling doesn’t just apply to the exterior, the interior takes its design cues from it as well, with new “squircle” gauges and higher-end materials and detailing, providing a more premium cabin feel. The interior also receives four additional cubic feet of leg room despite the shorter wheel base. In regards to safety equipment, the 2013 Malibu will feature dual-stage driver & front passenger airbags, driver & front passenger pelvic/thorax side-impact airbags, roof rail airbags with rollover protection and OnStar, providing Automatic Crash Response, voice recognition technology, remote diagnostics, Stolen Vehicle Slowdown and six months of Turn-By-Turn Navigation. Rear park assist and a rearview camera system is also available with select models.

Pricing is a little fuzzy at this point, but logic suggests the MSRP should resemble the current 2011 models, with the base starting at around $22,000. Pricing for the ECO model will be announced closer to when it hits the salesfloor.

View Our Chevy Malibu Inventory

In 2010, the all-new Chevy Camaro bolted to the sales lead in its segment, besting powerful competitors like the Ford Mustang and Dodge Challenger. To its credit, the Camaro achieved overall sales dominance without a drop-top model in the lineup. This year, Chevy fills that void and broadens the appeal of its best-selling muscle car by adding the 2011 Camaro convertible to the stable.

Transforming a closed coupe into a convertible can mean diluting the car’s ride-and-handling prowess. Without design and engineering modifications, removing the hardtop weakens the body structure, and a softer ride is necessary to compensate for the resulting cowl and steering wheel shake. Chevy avoided that compromise on the 2011 Camaro convertible through diligent, painstaking engineering, reinforcing the body structure with strategically placed braces. The result is an open-air sportscar that equals the driving dynamics of its coupe stable mate, and betters the torsional stiffness of the BMW 3-Series convertible.

Chevy offers the new Camaro convertible (MSRP starting at $29,150) in two models: LT (1LT and 2LT trims) and the high-performance SS (1SS and 2SS trims).

The standard engine is a 3.6-liter V6 featuring direct fuel injection and making 312 hp. The SS convertible gets the same 6.2-liter V8 as its mighty SS coupe sibling with a road thumping 426 hp and 420 lb/ft of torque on tap.

A six-speed manual gearbox with Launch Control serves as the standard transmission on both models. Working in concert with the V8, the manual helps deliver zero-to-60 acceleration runs of just 4.9 seconds (for comparison, a 2011 Porsche 911 Carrera makes the same run in 4.7 seconds).

The available electronic six-speed automatic also lets you shift gears manually via steering wheel-mounted TAPshift controls. Match the V6 with the automatic or manual and the Camaro convertible returns an economical 29 mpg on the highway. Proving you can have blistering performance and high efficiency, the V8 delivers an impressive 25 highway mpg.

View Our Chevy Camaro Inventory

Straight-line performance is given with a muscle car, but purists will tell you that all Camaros, drop-top or not, are meant to carve the road. Along with extensive body-structure reinforcements, Chevy kept that road hugging reputation alive by equipping the convertible with four-wheel independent suspension, electronic power steering and ABS brakes with single-piston calipers (track-ready Brembo four-piston units on the SS). A limited-slip rear differential and StabiliTrak Electronic Stability Control System with Traction Control are also standard. The SS’s performance-tuned suspension also features a “competitive mode,” for drivers who compete in sanctioned racing events.

Sweating the details delivered a power folding top with a smooth, taut appearance, forgoing the unsightly ribs found on most convertibles. The top is made of durable canvas (black or tan) and has a headliner that incorporates acoustical foam to reduce road noise when it’s closed. A glass rear window, complete with defogger, ensures clear visibility. Pop the latch center-mounted in the windshield header, press a single button and the top retracts in 20 seconds. You can also use the available tonneau cover (standard on 2LT and 2SS) for a clean profile once the top is stowed.

WardsAuto.com honored the Camaro with the Interior of the Year award in the Sports Car Category for 2010. Chevy maintains bragging rights with the new convertible, delivering the same high level of interior comfort, style and amenities.

Highlights on the long list of standard features include a six-way power driver’s seat with power recline, an AM/FM/CD/MP3 sound system with audio input jack, XM Satellite Radio and OnStar with the Directions & Connections Plan, which includes Turn-by-Turn Navigation (first six months free). You also get cruise control, a tire pressure monitor and Ultrasonic Rear Park Assist.

Available on the 1LT Trim and standard on 2LT and 2SS, the Convenience and Connectivity Package brings such must haves as Bluetooth connectivity, a USB port, remote start and leather wrapping for the shiftknob and steering wheel.

Stepping up to the 2LT and 2SS Trims gets you heated, leather-appointed front seats, a Head-Up Display (HUD), a four-gauge auxiliary cluster and a Boston Acoustics® premium eight-speaker sound system.

Finally, the available RS Package features 20-inch flangeless aluminum wheels with Midnight Silver finish, HID headlamps with integral LED halo rings, unique taillights and a rear spoiler. You can also personalize your Camaro with available interior accent trim packages (including Inferno Orange leather), exterior stripe packages, ground effects and more. Chevy’s smartphone app adds convenience, and a five-year/100,000-mile limited powertrain warranty means security and worry-free driving.

The engineers’ goal in designing the new 2011 Chevy Camaro convertible was to match the ride, handling and overall performance of the best-selling coupe. A reviewer for the website autoblog.com did them one better, writing that the convertible “takes everything good about the Camaro and amplifies it.” Test those claims for yourself with a top-down test drive.

View Our Chevy Camaro Inventory

With the introduction of the all-new Cruze compact sedan, Chevy’s aim wasn’t to simply dominate the segment, but to redefine it from the ground up. To achieve that goal, Chevy designed the Cruze to set new benchmarks for roominess, safety, performance, standard content and, in the case of the 2011 Chevy Cruze ECO model, fuel efficiency. Thanks to a host of design and engineering enhancements, the Cruze ECO boasts an EPA-estimated fuel economy rating of up to 42 highway mpg. That number is tops in the compact class, and Chevy got the job done without resorting to hybrid technology.

The result of intensive design research (including more than 500 hours of wind-tunnel testing), the new 2011 Chevy Cruze ECO’s 42 highway mpg rating rivals or betters the fuel economy of not only competition like the Toyota Corolla and the Honda Civic, but also many hybrid sedans – the Nissan Altima Hybrid and Toyota Camry Hybrid among them. By avoiding the cost and complexity of a gas/electric-hybrid powertrain, Chevy is able to sell the Cruze ECO for an MSRP of just $18,175.

Sweating the details in the wind tunnel led to a host of air-slicing aerodynamic modifications. Compared to other Chevy Cruze models, the ECO features a lower ride height, a deeper front air dam, a decklid spoiler and flat underbelly pans. The upper section of the ECO’s grille has fewer openings while the lower section features an electronically controlled “Active Shutter System,” which blocks airflow when it’s not needed. The result is impressive: The ECO boasts a drag coefficient of 0.298, lowest in the compact class and a 10 percent reduction from the rest of the Cruze lineup.

Designers also put the Cruze ECO through an exacting weight-savings program, which included the use of lighter 17-inch aluminum alloy wheels and a lighter rear-axle assembly. At 3,009 pounds, the ECO weighs about 125 pounds less than its Cruze stablemates. Switching to low-rolling-resistance tires was another major step toward making the ECO the most fuel-efficient non-hybrid sedan on the market.

A big contribution to the Cruze’s efficiency comes from its turbocharged 1.4-liter four-cylinder engine, also found in the Cruze LT and the Cruze LTZ. The entry-level Cruze LS gets a naturally aspirated 1.8-liter version of the ECOTEC four-cylinder. The 1.4-liter four features variable valve timing and makes 138 hp and 148 lb/ft of torque. In the ECO, the engine benefits from water-cooled bearings and an oil pump designed for higher efficiency.

The ECO’s standard six-speed manual transmission uses taller gearing, and works in concert with a light that flashes in the gauge cluster to tell the driver when to shift for maximum fuel economy. A six-speed automatic transmission is available on the ECO as well.

Chevy Cruze Eco Achieving what Most Small Cars Can’t

Early reviews have described the ride of the Chevy Cruze Eco as both “nimble” and “pleasantly smooth.” Thanks go to its fully independent suspension, electronic power steering and four-wheel ABS brakes. The standard StabiliTrak Electronic Stability Control System with Traction Control and rollover sensing inspires confidence at speed, as does the standard array of 10 airbags – including front- and rear-seat side and new front knee units.

While weight savings was a vital factor in its design, you can count on interior refinements normally found in more expensive sedans. You’ll also find seating-for-five spaciousness with cabin volume easily exceeding that of the Honda Civic and Toyota Corolla.

The ECO boasts many standard amenities the compact competition makes you pay more for – or doesn’t bother to offer at all. The list of standards includes a Driver Information Center, remote keyless entry, an AM/FM/CD/MP3 sound system with auxiliary audio input jack and XM Satellite Radio with a three-month trial subscription. You also get a tire-pressure monitor, a theft-deterrent system with engine immobilizer and OnStar with the Directions & Connections plan (including Turn-by-Turn Navigation and Automatic Crash Response) free for six months.

Choosing the available Connectivity Plus Cruise Package garners Bluetooth connectivity, a USB port, cruise control, a leather-wrapped steering wheel and shiftknob and audio controls mounted on the steering wheel. There’s also a Driver Convenience Package, which nets you a six-way-adjustable power driver’s seat, rear park assist and remote start.

Chevy built the Cruze to redefine its segment from the ground up, proving to buyers that they can have much more – in refinement, room and performance – than they ever expected from a compact sedan. The 2011 Chevy Cruze ECO model gives you all that, plus non-hybrid fuel mileage unequaled in any segment. That’s no small feat for a small car.

View Our Chevy Cruze Inventory

All-new model excels under more rigorous government testing system

DETROIT, Dec. 23, 2010 /PRNewswire/ — The 2011 Chevrolet Cruze earned five-star crash test ratings from the National Highway Traffic Safety Administration (NHTSA), further building on the vehicle’s safety record in markets around the world.

The 2011 Chevy Cruze was tested under NHTSA’s revised New Car Assessment Program (NCAP) implemented this fall for the 2011 model year. The rating is based on more rigorous frontal and side crash tests in addition to rollover resistance testing. Under the new system, the three test conditions are combined mathematically into an “Overall Vehicle Score.”

The Cruze is the first vehicle tested under the new rating system to achieve five stars in each of the individual crash impact conditions, leading to an overall vehicle score of five stars – the highest rating possible.

“Cruze has achieved five-star crash safety scores everywhere it is rated in the world. This is the direct result of our global engineering team’s focused effort,” said Jeff Boyer, General Motors‘ executive director of vehicle safety. “These safety ratings reflect the confidence we have in Cruze’s state-of-the-art safety technologies and overall crashworthiness.”

The Cruze offers more standard safety features than any vehicle in its class and represents Chevrolet’s commitment to continuous safety – before, during and after a crash. Standard features include StabiliTrak electronic stability control, Panic Brake Assist and Enhanced Smart Pedal / Brake Override. The Cruze is the first car in its class with 10 standard air bags, including front knee air bags – a segment first. OnStar’s safety and security package is standard.

“Cruze is winning over consumers with its design, amenities, fuel economy and strong value for the money,” said Chris Perry, vice president of Chevrolet Marketing. “The five-star overall vehicle safety score provides another great reason for small car buyers to consider Cruze.”

The Cruze also received the highest-possible ratings of “Good” in front, side, rear and rollover crash protection tests by the Insurance Institute for Highway Safety, which recognized Cruze as a 2011 Top Safety Pick.

View Our Chevy Cruze Inventory

About Chevrolet

Founded in Detroit in 1911, Chevrolet celebrates its centennial in 2011 as a global automotive brand with annual sales of about 3.5 million vehicles in more than 130 countries. In the U.S., the Chevrolet portfolio includes: iconic performance cars, such as Corvette and Camaro; dependable, long lasting pickups and SUVs, such as Silverado and Suburban; and award-winning passenger cars and crossovers, such as Malibu, Equinox and Traverse. Chevrolet also offers “gas-friendly” solutions, such as Chevrolet Cruze Eco with an EPA-estimated 42 miles per gallon highway, and the Chevrolet Volt offering 35 miles of electric driving and an additional 344 miles of extended gasoline range, according to EPA estimates. Most new Chevrolet models offer OnStar safety, security, and convenience technologies including OnStar Hands-Free Calling, Automatic Crash Response, and Stolen Vehicle Slowdown. More information regarding Chevrolet models, fuel solutions, and OnStar availability can be found at www.chevrolet.com.

SOURCE General Motors

The Electrifying 2011 Chevy Volt

IMakeNews Inc.

The 2011 Chevy Volt delivers a jolt of energy to the American auto industry, and soon, Cedar Rapids Chevrolet dealership Pat McGrath Chevyland!

Chevy’s all-new Volt is electric, in more ways than one. It’s the most groundbreaking vehicle to ever roll off the automaker’s assembly line.

As Chevy’s first ever mass produced extended range plug-in electric vehicle, the 2011 Volt (starting MSRP $40,280 with an available federal tax credit of up to $7,500 that drops that figure to as low as $32,780), delivers a smart, fun-to-drive, and practical-to-own car that’s neither perpetually tethered to a power outlet, nor limited by low maximum distance barriers (like Nissan’s Leaf).

Chevy’s newest spurns bland, predictable styling in favor of sleek, aerodynamic modernism (in fact, with a drag coefficient of just 0.287, it’s one of the most aerodynamic Chevys ever built). Sophistication reigns in the Volt’s well-sculpted hatchback design, infused with attractive chrome pieces, standard 17-inch aluminum wheels, heated side mirrors and a rear spoiler.

But it’s the vehicle’s advanced powertrain, and the promise of never-before-seen fuel economy that makes the Volt so appealing. And rightly so; Chevy’s brainchild breaks the mold with an incredibly unique and versatile Voltec propulsion system, consisting primarily of a long-life battery and electric drive unit, and backed occasionally by a 1.4-liter gas engine.

Though remarkably complex and technically advanced, the fundamental workings of Chevy’s system are actually quite simple. Under normal circumstances, the Volt’s state-of-the-art, T-shaped, 16-kWh lithium-ion battery (backed by an eight-year/100,000-mile limited warranty) sends juice to a 111-kW electric drive unit, which generates 149 hp and anywhere from 25-50 miles of pure electric power. Essentially, depending on the manner and conditions in which you drive, the Chevy Volt is capable of traveling up to 50 miles, and up to 100 mph without using a single drop of fuel or expelling a single molecule of exhaust.

Chevrolet Volt Boasts Impressive MPG Numbers

Should your daily driving needs exceed that, or if the massive battery’s energy reserves are sufficiently depleted, the Volt extends its range with the help of a 1.4-liter gas generator, which kicks in another 84 hp and, working in tandem with the electric drive unit, up to another 310 miles of range. While regenerative braking helps to recharge some of the battery’s depleted juice, primary recharging is completed through a dedicated 240V charging station (a full charge takes just four hours) or through a normal 120V outlet, (which takes about 10-12 hours, and can be performed on a schedule of your choosing). So, while the Volt doesn’t necessarily eliminate trips to the gas station entirely, Chevy’s convenient and practical system should allow most Americans to drastically lower their fuel expenditures, and easily fully recharge for as little as $1.50 per day (depending on your electric rates).

Are you interested in the new 2011 Chevy Volt? If so, feel free to email us at sales@mcgrathauto.com or call us at 319-393-6300 to schedule a test drive! Our helpful and friendly sales staff is ready and eager to assist you in your search for a new vehicle!

The Volt runs smooth and quiet no matter where its power derives from. Chevy’s standard StabiliTrak electronic stability control system joins with a rock-solid body structure (composed of advanced steel), low center of gravity and MacPherson strut-type suspension setup to deliver a ride that’s as enjoyable as it is efficient. And with standard antilock brakes, eight standard airbags, OnStar (with automatic crash response) and safety belts with a pair of pretensioners, the Volt is one of the safest rides in its class (though, realistically, it’s in something of a class by itself).

The Volt’s sizable battery runs straight through the middle of its rear seats, making the plug-in a comfortable four-seater instead of the prototypical five. In terms of interior amenities, what you see is predominantly what you get (the Volt is offered in a single trim level), though what you get is an impressive array of standard features right off the bat. An available Premium Trim Package adds everything from heated leather seats (with different, selectable color combinations of trim and accents) to a leather-wrapped steering wheel, but generally, the Volt is well equipped with power options, climate control, a remote starter and XM Satellite Radio.

The technologically advanced cockpit houses a pair of seven-inch color LCD screens, the first of which sits in front of the steering wheel in place of a conventional gauge setup, and a second that sits prominently atop the attractive and intuitive center stack, (which itself resembles an oversized MP3 player with touch-sensitive controls). In addition to graphic readouts on your vehicle’s status, performance and efficiency, the stack’s touch-screen also houses the Volt’s standard navigation system. The integrated Bose audio system, (which uses 50 percent less power to operate than conventional systems) is backed by 30GB of internal music storage, as well as USB and Bluetooth connectivity. Through OnStar MyLink™, the Volt’s systems and status can even be checked and changed through a special app on your smartphone.

Electric. There are few better words to describe the innovative new 2011 Chevy Volt.

View Our Chevy Volt Inventory

GM is insistent that the Chevrolet Volt not be called a hybrid, a plug-in hybrid, or even an electric vehicle. So then, what to refer to the Volt as? An electric-vehicle with extended-range capability without range anxiety. That the very foundation upon which the Volt was first conceptualized and later developed. When it was first announced three years ago, GM’s charismatic executive Bob Lutz said that the Volt would be GM’s ‘benchmark in battery technology.’

“Even so, electric vehicles, in general, had limitations. They had limited range, limited room for passengers or luggage, couldn’t climb a hill or run the air conditioning without depleting the battery, and had no device to get you home when the battery’s charge ran low,” Lutz said. “The Chevrolet Volt is a new type of electric vehicle. It addresses the range problem and has room for passengers and their stuff. You can climb a hill or turn on the air conditioning and not worry about it.”

So how does it drive? We will get to that shortly, but first lets get the technical stuff out of the way.

The backbone of the Chevrolet Volt is the Voltec propulsion system. That consists of a 16-kWh, “T”-shaped lithium-ion battery that powers the electric drive unit, which is capable of meeting full vehicle speed and acceleration performance while driving the car on electric power for up to 40 miles without using a drop of gasoline. According to GM’s preliminary specs, the system puts out 150-hp and a maximum torque of 273 lb-ft, bringing the Volt from 0-60 mph in about 9 seconds, and hitting a top speed of 100 mph. The battery can be re-charged by plugging into a household outlet and takes less than 3 hours to recharge on 240 volts, and about 8 hours on a standard 120-volt outlet.

That does not mean that after 40 miles of driving your Volt will be rendered useless; enter extended range capability without range anxiety. The Volt carries a 1.4L 4-cylinder engine that allows the five-door, FWD sedan to travel additional miles until you’ve found an outlet to plug in to. In range-extended form, the Chevrolet Volt will average 50 mpg, which is comparable to the Toyota Prius. A fully charged battery and full tank of gas will take the Volt over 300 miles.

So how does the car drive? Like a completely normal vehicle. This is not a sport car, nor does it provide the feel of a naturally aspirated engine, but compared to cars like the Toyota Prius and the Honda Insight, the Volt definitely has a much more solid feel to it. Even in electric-mode, the car takes off (with an added Sport Mode), takes corners as you would expect a car of this caliber to, and takes stop-and-go driving like a charm. What we’re trying to say is that driving the Volt, you’ll feel completely normal and won’t experience anything totally unexpected; however, once you take your attention away from the street (and stop day dreaming about how you’re saving the world by driving a “green vehicle”) and look at the interior cabin, you’ll realize you’re driving something totally futuristic and innovative.

Inside, the Volt offers modern controls and attractive quality materials, two informational displays, and a touch-sensitive infotainment center with integrated shifter (which we thought was a bit bulky and odd) which all serve to distinguish the Volt from other vehicles on the market. It’s almost as if a designer from Apple Computers Inc. came to help GM out in designing the interior.

Some interior features of the Volt include driver-configurable, liquid crystal instrument display, standard 7-inch touch screen vehicle information display, touchscreen-style climate and infotainment controls, standard Bluetooth connectivity, and optional navigation system with onboard hard-drive for maps and music storage and rearview camera.

Our only real gripe with the interior was that the rear-seat area becomes very cramped with a tall individual occupying the front driver and passenger seat.

The outside of the Volt is akin to every other fuel-efficient vehicle on the market, an oddly shaped cheese-wedge like body. However, GM has focused all of their attention on the exterior towards maximizing efficiency. Every detail was carefully attended to minimize aero-drag and maximize battery range as air flows easily around the car. The rounded flush front fascia with closed grille hits the eyes in an odd way, but this too serves a purpose; just like the aerodynamic side mirror, sharp rear edges, and rear spoiler – too make the car move effortlessly through the air before it as it attaches itself at the front and quickly detaches at the rear to reduce drag.

So, should you sit on the edge of your seat waiting to buy this car? Only if you want something technologically advanced and want to cash out in the mid $30k range and if you can recoup your investment. For example, if your daily commute consists of 40 miles a day, you’ll never have to pay for gas. The only cost you’ll have is maintaining your Volt and the electricity cost for charging the vehicle, which is estimated at $0.80 per day for a full charge delivering 40 miles.

Also, keep in mind that come November, General Motors will only offer the Chevrolet Volt in California, Washington D.C., and Michigan; GM will not be offering the Volt nationwide until 2011.

www.youtube.com/watch?v=gbbv-CCVqyg

All Photos Copyright © 2010 Omar Rana – egmCarTech.

Omar Rana
EGM Car Tech
Source: http://www.egmcartech.com/2010/04/19/first-drive-2011-chevrolet-volt-pre-production-charges-toward-production/

General Motors Co. is repaying its remaining $5.8 billion in bailout loans to U.S. and Canadian taxpayers two months ahead of schedule.

It’s another promising milestone for post-bankruptcy GM, which last month reported better-than-expected earnings for the last quarter of 2009.

GM Chairman and CEO Edward Whitacre Jr. will make the official announcement Wednesday at at the automaker’s Fairfax plant in Kansas City, Kan., two people briefed on the plans said Monday. The actual payment could be made as early as today.

The Detroit-based automaker also will announce a new investment at the Kansas plant, which could include adding jobs, a person familiar with the matter said.

The final loan repayment will total $4.7 billion to U.S. taxpayers and about $1.1 billion to the governments of Canada and Ontario.

The U.S. treasury will still own about 61 percent of the automaker, however, because about $43 billion of the $50 billion in aid that the government gave GM during its bankruptcy last year was converted to equity. Canadian taxpayers swapped about $8 billion for a 12 percent stake.

Also Wednesday, Whitacre will make his first visit to Capitol Hill since he took GM’s helm in December. He is to meet with House Speaker Nancy Pelosi and Michigan lawmakers.

Under its agreement with the Treasury Department, GM was to repay the loans by June 30. The automaker will tap unused Treasury funds being held in escrow to repay the government. The early repayment is aimed in part at reassuring American consumers who were turned off by the massive government bailout that saved GM from collapse.

It will take months or even years to determine if taxpayers will be completely repaid because the Treasury can’t start selling its shares until GM holds an initial public stock offering. That likely won’t happen until next year.

Aaron Bragman, an auto analyst at IHS Global Insight in Troy, said Monday he didn’t think repaying the loans would influence consumer thinking.

“People have pretty much made up their minds whether the bailout was a good thing or a bad thing,” he said.

Bragman said the repayment’s bigger impact is a step by GM toward independence from the government.

The Treasury isn’t likely to completely sell off its shares for at least two years, officials have said.

“This is an important step on the road to an IPO,” Bragman said.

GM spokesman Greg Martin would neither confirm nor deny the automaker’s repayment plans. A Treasury Department spokeswoman, Meg Reilly, also declined to comment.

GM has already repaid $2 billion of $6.7 billion in U.S. loans, and about $400 million of $1.4 billion in Canadian government loans.

GM Chief Financial Officer Chris Liddell said this month that GM could report a profit as early as this year.

The automaker lost $3.4 billion in the fourth quarter of 2009 on revenues of $32.3 billion.

The White House plans to embrace the news of GM’s full repayment as a sign of its post-bankruptcy progress. President Barack Obama has praised GM’s payments to date as a sign of progress.

Bailout was ‘right thing’

“A year later, GM is hiring again, on the verge of reopening hundreds of dealerships,” Obama said this month. He said that’s evidence the bailout “was the right thing to do.”

In meeting with Pelosi and others in Washington on Wednesday, Whitacre will continue GM’s effort to shore up its sometimes testy relations with Congress — especially with Republicans who opposed the $50 billion bailout and with members of both parties over its plans to shrink its dealer network by year’s end.

Whitacre has sought to bolster GM’s relationships with Congress, and installed two new lobbyists in January with ties to AT&T Corp., where Whitacre served as chairman and CEO.

He has taken a much softer line with GM dealers than his predecessor, Fritz Henderson. A number of lawmakers were distressed by GM’s plans to prune its dealer network as part of its restructuring.

The automaker last month offered 661 dealers the chance to remain open. It sent letters to more than half of the 1,160 dealers that were appealing orders to close.
Spotlight on Volt, Cruze

GM is using Earth Day in Washington to tout its extended-range Chevrolet Volt and its new high-mileage Chevrolet Cruze.

On Thursday, the Volt and Cruze will be on display outside the Russell Senate Building for lawmakers and aides to test drive.

The Volt will be on display on the National Mall near Seventh Street on Saturday and Sunday.

Bloomberg News reported Monday that GM will expand its Fairfax factory and may add a new product.

“They plan on shooting some kind of commercial,” said Jeff Manning, a 29-year-old GM employee who has headed United Auto Workers Local 31 at Fairfax for five years.

Whitacre just visited the Fairfax Assembly plant March 18, with GM Vice Chairman Steve Girsky. “I don’t know why he would be coming back unless it was something major,” Manning said.

Fairfax assembles the Buick LaCrosse and Chevrolet Malibu, and has run three shifts since January with 3,500 hourly employees. Laid-off GM workers from around the country were hired to fill slots at the Kansas plant.

David Shepardson
Detroit News
Source: http://www.detnews.com/article/20100420/AUTO01/4200366/1148/GM-to-pay-off-$5.8B-bailout-loans-early#ixzz0lflHdE9H

www.youtube.com/watch?v=ujKYEJqgWEE

Top Ten Reasons to Buy a Chevy Equinox

1. Price: Equinox starts at $24,250; Similar V-6 competitors: Toyota RAV4 $24,280; 2009 Nissan Xterra $23,090.
2. Best warranty in the industry. Equinox offers a 3-yr/36,000 mile bumper-to-bumper warranty plus a 5-yr/100,000 mile powertrain warranty with roadside assistance and courtesy transportation.
3. Fuel Economy: Equinox delivers 17 mpg city/24 highway; Competitors: 2008 Xterra 15/20; 2008 Liberty 16/22.

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General Motors Co. has scrapped a plan to reshape its Cadillac dealer network in the image of Lexus.

GM had said it wanted to cut the number of Cadillac franchises by two-thirds — from 1,422 on Jan. 1, 2009, to about 500 by the end of this year. That plan would have put it in line with import luxury brands, which typically use a few hundred dealerships and focus on coastal urban markets.

Now GM is using dealer reinstatements to rebuild its network of small-town Cadillac dealerships, interviews with dealer lawyers, consultants and advocates showed.

The dealer representatives interviewed by Automotive News said 55 of their 75 clients that are to be reinstated are rejected Cadillac showrooms. The vast majority of those Cadillac dealerships, which were being wound down for closure by October, are in rural areas or small towns, the interviews showed.

“We think that GM realized that terminating these dealers would leave a lot of loyal Cadillac customers orphaned and not produce a material benefit in the form of increased sales,” said Ernie Manuel, president of the Fontana Group in Tucson, Ariz., a financial consulting firm for dealerships.

The 922 Cadillac franchises marked for closure in last year’s reorganization accounted for nearly half of the 2,000 GM stores affected. Last year GM planned to close 1,350 dealerships and another 650 franchises at dualed stores.

Since GM’s bankruptcy last June, the company has been pushing Cadillac sales in large metropolitan areas on the East and West coasts while winding down dealerships in less populated regions, dealer lawyers and consultants said.

That attempted realignment sought to mimic the network distribution of BMW, Lexus and Mercedes-Benz, they said.

“Cadillac definitely appears to be rethinking any portion of their business plan that might have been lifted from the Lexus or BMW playbook,” said Scott Watkins, senior consultant at Anderson Economic Group of East Lansing, Mich., a financial consulting firm for dealers.

On March 5, GM started notifying 661 of the 1,160 rejected dealerships that had filed for arbitration that the company intended to reinstate them.

The automaker sent the dealerships letters of intent that were supposed to arrive by Friday, March 12, GM spokeswoman Ryndee Carney said. The letters were to identify requirements such as capital, facility size and floorplan financing that stores had to satisfy to qualify for reinstatement.

Dealers have 10 days to sign and return letters and 60 days more to send paperwork to fulfill the requirements.

‘We’re excited’

“We’re excited and looking forward to getting Cadillac back up here,” said a rejected small-town Cadillac dealer, Charles Spadafora Jr. of Indiana, Pa.

Spadafora, 34, said the only thing that could keep him from pursuing reinstatement would be if the letter of intent contained onerous conditions, such as a requirement that he invest millions in his store.

GM wouldn’t say how many Cadillac dealerships have been contacted or why such a disproportionate number seem to be Cadillac stores.

“We’re not commenting on the specific dealers who are receiving letters of intent nor breaking it down by brand,” Carney said.

A clue to GM’s thinking might be found in Cadillac sales figures. Since the company’s June 2009 bankruptcy, Cadillac’s monthly sales have fallen 15 percent compared with the same period a year before, according to the Automotive News Data Center.

That’s roughly twice as much as the 7 percent decline in Buick sales during the same period and the 8 percent slide in Chevrolet sales. It’s comparable to GMC’s 16 percent plunge.

“It doesn’t take a rocket scientist to understand,” said Ron Coleman, a dealer lawyer in Tacoma, Wash. “It wasn’t costing GM a lot of money to have dealers in small markets sell Cadillacs.”

Neil Roland
Automotive News
Source: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100315/RETAIL07/303159939/1260#ixzz0iRlXpPKm

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