DETROIT'S REBOUND IS BUILT ON SMALLER CARS

By Bill Vlasic, New York Times - After years of being outgunned by Japanese rivals, the American auto industry has made small cars a central part of its strategy, seeking to capitalize on a fundamental shift in the preferences of consumers in an era of fast-rising gas prices.

By refocusing on small cars and de-emphasizing the gas-guzzlers that had long sustained the industry, General Motors and Ford in particular are preserving jobs and positioning themselves to prosper. Their efforts are already paying off in the marketplace. Ford's tiny Fiesta is the best-selling subcompact in the United States this year, and GM's Chevrolet Cruze outsold every other compact car in America last month except the segment-leading Honda Civic.

Nearly one in four vehicles sold in the United States in April was a compact or subcompact car, compared with one in eight a decade ago. Of the small cars sold in April, about 27 percent were American models, compared with 20 percent a year earlier. Data on sales in May will be released on Wednesday.

"There is a less-is-more mentality," said Jeremy Anwyl, chief executive of the auto research site Edmunds.com. "The market demand and receptivity for these vehicles just didn't exist four or five years ago."

The transformation in Detroit was sparked by the worst financial crisis in generations, but was also assisted by an unusual set of circumstances.

The United Auto Workers made steep concessions on wages and benefits. The Obama administration used the opportunity of the bankruptcies of GM and Chrysler to prod them on fuel efficiency. Japanese carmakers like Toyota and Honda became complacent about their frontrunner status. And the psychology of the American car buyer underwent a stunning change.

"The most important thing we had to do was restore our reputation as a fuel-economy company," said James D. Farley Jr., Ford's head of global sales and marketing. "Without that, we couldn't get a wide group of people to even consider these new products."

After decades of turning out embarrassingly uncompetitive small cars like the Chevy Vega and Ford Pinto that rarely contributed to their bottom lines, GM and Ford have devoted their vast global resources to producing new models that are both fuel-conscious and laden with technology and attractive features. Chrysler, the smallest of the Detroit car companies, has been slower to make the changes, but with the help of its Italian partner Fiat it is headed in the same direction, with a new compact model expected next year.

The emphasis on smaller vehicles has proven to be a necessity for the recovering auto companies. Rising fuel prices have prompted a steady migration away from bigger vehicles since the spring of 2008, when gas hit $3.50 a gallon. Industry analysts and company executives say the shift is likely a permanent one, as consumers flock to small cars packed with features like heated leather seats, Internet access and voice-activated entertainment systems.

With every new small car sold, the acceptance of American brands is reinforced as automakers erase the bad memories of their cheap and unappealing "econo-boxes" of the past.

"This car has changed my impression of Detroit, big time," said Christopher L. Garcia-Rivera of Northborough, Mass., who averages nearly 40 miles to the gallon in the Ford Fiesta he bought for $14,900 in April.

The signs of change are apparent everywhere in the industry's home state of Michigan, where Ford has converted a former SUV plant to build small cars that will be available in hybrid and electric versions, and GM is preparing to make the first subcompact model it has ever produced in the United States.

Ford got a head start on its small-car push when it hired an outsider, Alan R. Mulally from Boeing, to reorganize its operations five years ago. GM, however, had to go through bankruptcy in 2009 before it could shed its big-truck mentality.

"We focused our resources where the market was before," said Mark L. Reuss, president of GM North America. "You have got to spend money to do great small cars."

The dominance of the Japanese small car has eroded, in part, because Toyota and others didn't consistently update their models in recent years. "Toyota really dropped the ball with their bland styling and plastic interiors," said John Menschede, a retired county assessor in High Ridge, Mo., who paid $19,700 for a Cruze with a turbo-charged engine and Bluetooth wireless communication equipment. "I wanted something with a lot of bells and whistles and that's what I got."

Still, foreign cars continue to give Detroit stiff competition. The Korean carmaker Hyundai has introduced well-received models, and Honda recently started selling a new version of the Civic, the perennial market leader. But instead of a few Japanese models gravving the bulk of the sales, the compact-car segment is now a wide open field.

John W. Mendel, Honda's top American sales executive, said the Japanese carmaker was confident that its small cars would meet the challenge from the latest American models. "Better products from our competitors?" said Mr. Mendel. "That's a good thing for the US marketplace, but the Civic remains the trendsetter."

In the past, Detroit automakers neglected small cars because they could not make money on them. That has changed for several reasons. Labor costs are lower since the UAW agreed to concessions on health car for retirees and a 50 percent wage reduction for new workers. GM and Ford are also spreading the development costs of compact and subcompact cars across their global divisions in North America, Europe and Asia.

Ford is building variations of its new Focus at factories across the world. The car's basic design and engineering, however, was done in Europe, where consumers have long appreciated the value, fuel efficiency and performance of smaller models. "The way we work now is to use the teams that know the markets the best," said Derrick M. Kuzak, Ford's global product chief.

The companies still earn far bigger profits on trucks and SUV's. But small cars are now commanding better prices in the showroom. A year ago, GM's previous small sedan, the Chevrolet Cobalt, sold for an average price of $18,400, according to TrueCar.com. Last month, however, the typical Cruze sold for $20,600.

Detroit executives are aware they still have a lot to prove. Mr. Reuss cringes when reminded of some of GM's subpar products of the past, and vows never to repeat those mistakes. "Our company has been changed forever," he said. "We've got a window to get it right this time."

He knew GM was on the right track when he parked one of the first new Cruzes off the assembly line at a supermarket in suburban Detroit, and a store employee rushed over to check it out. "She said, I can't believe Chevrolet is building a car this size that's this good,'" Mr. Reus said.

CAW 'NERVOUS' OVER GM'S IMPALA PRODUCTION PLANS

By Grace Macaluso, The Windsor Star - The CAW will press General Motors for assurances that production of the Chevy Impala will continue in Oshawa following plans by the automaker to assemble the next generation of the full-sized sedan at its plant in Hamtramck, Michigan.

"It's never good that they're building one product at two plants," CAW president Ken Lewenza said Wednesday. "Are we nervous? Yes."

GM said it will add two shifts at Detroit-Hamtramck for the Impala and the previously announced plan to build the Chevy Malibu. The tooling and equipment for the Impala will require another $69 million in investments. In April 2010, GM said it would invest $121 million in the plant to support Malibu production.

Mike Albano, GM spokesman, said the current Impala will continue to be produced in Oshawa, however, "as far as the next generation, we can't say at this time."

Lewenza said he wasn't sure whether the "market can sustain two plants manufacturing the same vehicle."

"It's hard to determine what it really means to us because we're going to have multiple vehicles being manufactured, including the Impala," he said.

"All we can hope for is General Motors making a wise decision based on their expected sales of the combined volumes in both Hamtramck and Oshawa, and they're making investment decisions on similar vehicles because they believe the market can sustain new production opportunities."

The Oshawa plant runs on two shifts and employs 4,500 workers, including 300 salaried employees.

It produces 825 Imapalas a day, according to Jason Easton, GM Canada spokesman. As well as the Impala, the Oshawa plant assembles the Buick Regal, Chevy Camaro sports car and about 10 per cent of production of the Chevy Equinox, said Lewenza.

The Impala will be undergoing a full redesign for the 2014 model year.

The Detroit-Hamtramck factory also makes the Chevrolet Volt.

GM said last week that it plans to ramp up Volt production to 60,000 next year, from an earlier plan to produce 45,000.

Earlier this month, GM announced plans to invest $2 billion in 17 plants in eight states. Among the plants getting additional investment: Bowling Green, Kentucky, home of the Chevrolet Corvette; and powertrain plants in Toledo, Ohio, as well as Flint and Bay City, Michigan. About 4,000 jobs are being created or retained at those plants, GM said.

WAGE AGENDA

Southfield, Michigan United Auto Workers vice president Joe Ashton, who negotiates with General Motors, said Wednesday he wants to raise the $14-an-hour entry-level wage for union members at assembly plants in talks this year.

The pay for new employees, about half of what senior workers get, is "not a middle-class wage," Ashton said after GM announced it will invest $69 million and add 2,500 jobs to start making two new models at the Detroit plant that builds the Chevrolet Volt plug-in hybrid.

The UAS would seek to partially pull back on a concession made four years ago before the automakers have had a chance to hire many workers under the lower wage. The union is not seeking to eliminate the entrylevel wage, which is paid to three per cent of its members at the three largest U.S. car companies, Ashton said.

"We're not looking to make these plants uncompetitive. It's no good making $28 or $38 an hour if you don't have a job."

ELECTROLYZER HELPS PRODUCE SYNTHETIC NATURAL GAS

Audi thinkgs e-gas the route to greener cars

By Graeme Fletcher, Montreal Gazette - When it comes to future transportation, most manufacturers are keying on electric propulsion. Nissan envisions the pure electric car as the future (the Leaf), while General Motors favours the extended-range electric car as is typified by the Chevrolet Volt. Audi believes the electrification of the automobile is the right route, but only as long as the power needed to recharge the main battery or create the hydrogen that will feed the fuel cell comes from a sustanainable, renewable resource.

The Audi Balanced Mobility initiative looks at not only the power consumed in the production of a new car but also the fuel consumed over its 200,000-kilometre life and the environmental cost of recycling the vehicle.

Consider the new A6. The balanced approach comes together in a number of ways. Mass reduction (the new A6 is 80 kilograms lighter than its outgoing counterpart) allows a smaller, more fuel-efficient engine and a smaller gas tank without affecting either performance or the per-tank driving range.

Throw in aerodynamic improvements and you end up with much better fuel economy - the new A6's average fuel consumption drops from the outgoing car's 7.1 litres per 100 kilometres to 6.0L/100 km.

The other part of the initiative is both clever and points to the way future fuels will reduce the environmental burden.

The problem with the electrification of the automobile is that not all electricity is created equal. The environmental toll it takes depends very much on how the electricity that's needed to recharge the main battery is produced.

To put things into perspective, it helps to compare the environmental footprint of a regular gasoline-powered family sedan with the footprint of a similarly sized electric car and the electricity it consumes on a well-to-wheel basis.

In countries where electricity production is green, the environmental footprint would be much smaller than where it comes from ... coal.

Audi's clean energy solution is to harness the wind. The company has invested in four wind turbines that produce enough electricity to satisfy the needs of a town of 35,000 people.

If all goes as envisioned, the electricity will be used in one of two ways -- down the road it will satisfy the need to recharge an electric car or the electricity will be used to power an electrolyzer. The latter splits water into oxygen, bled off to the atmosphere, and hydrogen, stored for future use.

When the fuel cell finally comes of age, they hydrogen will provide the fuel required to produce the electricity. In the near term, however, it will be mixed with carbon dioxide, which is harvested from the atmosphere, to create synthetic natural gas. Audi calls it e-gas.

The conversion of electricity into a readily storable medium allows it to heat homes or to be used as a source of automotive fuel. To this end, Audi will launch a turbocharged natural gas-powered (TCNG) version of its next generation A3, which will hit the road in 2013.

The use of wind or solar power to create an automotive fuel, be it the electricity needed to recharge a battery or the e-gas that will fuel compressed natural gas-powered vehicles, is an ingenious solution.

Sure, there is a compromise when electricity is converted into hydrogen because there is some power consumption in the conversion process), but it is this sort of thinking that will solve a moral dilemma and pave the way to a greener automobile.

LAPD'S NEW CHEVROLET CAPRICE PPV WITH TRANSLOGIC

By Zach Bowman, autoblog.com - By now, you've probably committed every detail of the new generation of police cruisers to memory. With so many potential successors to the Ford Crown Victoria throne, it pays to know exactly which models to look out for on the road, especially if you dabble in extra-legal speeds. The guys from Translogic recently got the chance to get up close and personal with the new Chevrolet Caprice PPV courtesy of a tour by the Los Angeles Police Department. Along with getting the full scoop on what the vehicle has to offer in terms of officer and criminal comfort, we're also introduced to some of the killer tech on board the new cruiser.

Officers are now treated to an easy-to-navigate touch screen that handles everything from HVAC controls to advanced crime-fighting tech. License-plate recognition software combines two front-mounted cameras with a criminal database to alert officers of potentially threatening drivers and an additional super-sensitive infrared camera can even detect a perpetrator's footsteps at night. Go go gadget awesome.

ENDORA SC-1 BLENDS VINTAGE AMERICAN LOOKS, MODERN CORVETTE POWER

By Jason Udy, Automobile Magazine - Need to rebody your sixth-generation Chevrolet Corvette? If so, then German tuner Endora may have the vehicle for you. It's new SC-1 coupe, which it bills as "a classic sports car design with modern technology," is little more than a C6 Vette wrapped in unique -- if not unusual -- bodywork.

Endora's press team insists the SC-1 "picks up the looks and values of contemporary America and European sports cars once built in the '60s and early '70s and skillfully reinterprets it into the present." We suppose that's up for debate. In some ways, the SC-1 resembles a DeTomaso/Qvale Mangusta skin stretched to fit a Corvette frame, although some cues -- like the kick-up around the rear quarter panel, or the fender skirts over the rear wheelwells -- seem loosely tied to vintage American iron.

Seeing as the SC-1's body wrapped around Vette mechanicals, it's not surprising to learn engine choices largely mirror those of the C6 Corvette. Buyers have their choice of a 436-hp, 6.2-liter V-8, the Z06's 505-hp, 7.0-liter V-8, and the ZR1's supercharged 638-hp 6.2-liter V-8. Pricing has not been announced quite yet, but rest assured, you'll be spending at least $50,000-$110,000 for the donor vehicle alone depending on your powertrain preferences.

This isn't the first time we've seen a company custom-body a Corvette to add some retro flavor -- but seeing as other examples are drop-dead gorgeous, the folks at Endora certainly have their work cut out for them.

GM TO USE LANDFILL GASES AS AN ENERGY-SAVER AT ORION PLANT

As production of the fuel-efficient 2012 Chevrolet Sonic and Buick
Verano begins this fall at the General Motors Orion Assembly Plant,
40 percent of the energy required to build the vehicles will come
from burning gas from a nearby landfill.

By Suzanne Ashe, cnet.com - General Motors has taken steps to make the Orion Assembly Plant even more energy efficient including using landfill gas to cut energy costs.

The plant will begin assembling the 2012 Chevrolet Sonic and Buick Verano this fall. With an upgraded paint shop that is heated by natural and landfill gas, the painting process will use half of the energy per vehicle of the one it replaced. The system runs exclusively on landfill gas primarily to generate steam for heating and compressed air for most of the year.

According to GM, both the Sonic and Verano use a new eco paint that eliminates the need for a primer oven and increases quality and appearance due to waterborne base coats.

Running a full three-shift capacity, the Michigan plant will reduce greenhouse gas production by about 80,000 metric tons, the equivalent of 14,000 vehicles per year, and the electricity reduction equals the output from 3,500 homes. This will save the automaker $1.1 million a year in energy costs.

"Orion is a great example of the latest technologies employed by GM manufacturing around the globe," said Eric Stevens, GM vice president of Global Manufacturing Engineering. "As we converted the facility to support the small car program, we took every opportunity to engineer in flexibility and lean manufacturing concepts."

Use of landfill gas is just one of the ways the plant lessens its environmental impact. GM has also made lighting system upgrades that save more than 5,944 megawatts of electricity per year (at a cost savings of $430,000 and has cut carbon dioxide by 3,676 metric tons.

Plant workers track energy use on an hourly basis with sophisticated software, enabling them to seel real-time usage by department to improve their equipment shutdown activities, GM said.

"Environmentally friendly choices often translate to higher efficiency and quality," said Maureen Midgley, GM executive director of Global Manufacturing Engineering.

LOW-SPEED ELECTRIC VEHICLES: A BETTER WAY TO TRAVEL

By Erin Everhart, greengrowthcc.com - When you think electric vehicles, a few things probably come to mind: Chevrolet's Volt, Nissan's Leaf, the "zero" advertising campaign that Leaf is currently running, having to plug in your car. But there's another sector that hasn't gotten nearly the media attention but is quickly becoming a better way to get you from point A to point B: low-speed electric vehicles.

Functioning similarly to their full-size counterparts, low-speed electric vehicles cost only 2 cents per mile to operate and are street legal on most roads with a speed limit of 35 mph. This makes them the perfect accessory for any short trips, like running errands or going to work or the gym, in urban areas when taking out the SUV isn't a necessity.

In fact, the average distance traveled on most car trips was just more than 10 miles in 2009. When you're only going a short distance, low speed electric vehicles make more sense than your full-size car because they're easier to maneuver around, more cost and gas efficient, and don't emit any of the toxic emissions.

For personal use, low-speed electric vehicles resemble golf carts, but to date, the biggest use of electric vehicles has been from a commercial standpoint. Electric utility vehicles, like patrolling police cars or buses and shuttles, are the better alternative for government agencies or college campuses to keep fuel and energy costs low.

"Using low-speed electric vehicles just makes sense these days," said Justin Jackrel, owner of Road Rat Motors, a retailer of low-speed electric vehicles. "With some of the models costing as little as 1 cent per mile to operate and the current tax rebate of 10% of the total purchase price, you can't go wrong."

Still, a low-speed electric vehicle isn't something that you buy on a whim. It's a commitment, and there are a few things to help you decide if, and which style, is the right one for you.

• Open vs closed: In warmer climates, open NEVs (neighborhood electric vehicles) because you get more space without feeling like you're in a smaller, enclosed car. But, you are subjected to weather forces.


• Cost: While most low-speed electric vehicles are far less expensive than cars, they aren't considered cheap, with most coming in between $8,000 and $16,000. However, considering that it costs 1-3 cents per mile to operate, the long-term savings outweigh the initial price tag.


• Why buy? If you live in an urban setting where you're typically only traveling short distances, NEVs will pay for themselves multiple times over in cost savings on gas and maintenance.


• Not just golf carts: Street legal golf carts are not the only type of low-speed electric vehicles. In fact, most NEVs have features similar to any full-sized car, just on a smaller scale.
  

CHEVROLET VOLT PART MADE FROM RECYCLED OIL BOOMS

By Chris Woodyard, USA Today - There's a little bit of irony in every Chevrolet Volt. The extended-range electric that saves oil is being made with a part that's composed of oil-soaked absorbent boom material from the Gulf of Mexico.

General Motors bought enough leftover boom materials to make a year's worth of the air-deflecting baffles that go into the car.

"GM decided to offer assistance by collecting boom material from the Gulf coast until there was no longer a need," said John Bradburn, GM's manager of waste-reduction efforts. "We're in the process of identifying other areas where the material we have left can be used -- potentially in our plants -- now that we have a sufficient quantity for the Volt."

GM is using a lot of the leftover material, and it's going to lead to some big savings.

By using 227 miles of the leftover material from the booms for the Volt parts, GM hopes to save 29,000 gallons of absorbed water and oil by recycling it and to eliminate 212,500 pounds of waste that otherwise would have gone into a landfill. The Volt is the perfect place for it, one of the first plug-in cars from a major brand that can run 25 miles on electric power before the motor recharges the car.

The air deflectors are made of 25% of the boom material and have another 25% recycled tires. The rest are plastic both virgin and recycled.

GM says that before it came along, contaminated boom material was thrown away or burned.

In 2010, GM facilities worldwide recycled 92% of the waste they generated. It uses recycled and bio-based materials such as platcis bottles, blue jeans, carpet, cardboard, tires, kenaf fibers, balsa wood and soy in its vehicles.

GM TO BOOST VOLT OUTPUT; TIGHT SUPPLY EXPECTED THIS SUMMER

By Mike Colias, Automotive News - General Motors said today that it will boost production of the Chevrolet Volt, although a month-long retooling of the assembly plant will make the plug-in hybrid even tougher to get this summer.

Early next month, GM will close its Detroit-Hamtramck plant for four weeks to complete scheduled upgrades. That means retail deliveries "will be further restricted over the next three months," GM said in a statement.

The installation of new tools and equipment will allow GM to produce 16,000 Volts this year -- up from a previous target of 15,000. Next year, GM aims to make 60,000 Volts, an increase from the 45,000 planned earlier.

"By taking the time to reconfigure the plant, we will be better able to meet the tremendous consumer demand," said Cristi Landy, director of marketing for the Volt.

Despite the summer lull, Landy said GM will make good on its plan to make the car available nationwide by year end.

The Detroit-Hamtramck plant also is being reconfigured to produce the 2013 Chevrolet Malibu mid-sized sedan, which goes on sale in the first quarter of next year.

GM: 90 MILLION V8S MOTOR MOUTH: ONE

By David Booth, National Post - This will hardly come as a surprise, but I'm a gear head. Like others so afflicted (that's how the rest of the human race describes our condition), I suffer a variety of symptoms. I spend all my money on things internally combusting. My spare room is a magazine-cluttered homage to Gordon Jennings, David E. Davis Jr. and Henry Manney III. Perhaps most annoyingly, all my metaphors, no matter what the subject at hand, inevitably end up automotive related. Pathetic as it may be, the automobile is my context for everything in life.

I have raced motorcycles, screamed along the autobahn at speeds I really don't want my mother to read about and, on more than one occasion, I have completely disassembled engines in my bedroom. In other words, there's grease under my fingernails. But I have never built a small-block Chevy.

Quite how I missed this rite of passage, I'm not quite sure. General Motors has built more than 90 million V8s of various displacements since 1955, and a large proportion of those have been built, hot rodded or otherwise tinkered with in the ensuing 56 years. It's not for lack of experience; I've rebuilt everything from Honda Civics to two-stroke motorcycles. But, somehow I've never spun a wrench on the most ubiquitous of North American engines.

Until now.

It turns out that General Motors has a brand new, very exclusive (as of my writing, only 15 people have participated) program that allows prospective customers of the company's Z06 and ZR1 Corvettes to go to suburban Detroit and build the 6.2-litre V8 that will power their very own supercar. It adds US$5,800 to the price of the car. Yes, paying extra to build your own engine is a little like going to McDonalds and paying a premium to fry your own burger, but I suspect there will be more enthusiasts clamouring for the opportunity if for no other reason than "I built that" will get you some serious props at the Sunday Show&Shine.

And you really do build your own engine. The Performance Build Centre in Wixom, Michigan, has an entire assembly line reserved for the amateurs among us. And, while one of the small factory's master technicians follows your every step so you don't put a camshaft where the crankshaft should be, you really do torque all the bolts and fit all the pistons yourself.

The reason GM is confident offering this service is that the entire process has been made virtually foolproof. The engine, as advertised, is completely hand-built, but the processes, tools and jigs the Performance Centre has created makes it very difficult for a mechanical faux pas.

One master artist -- or, as you can see from the picture, on ham-handed klutz supervised by a master artist -- builds the entire engine along a line of 11 sub-assembly "stations" in a system that is a combination of small artisan shop and large automated factory. Unlike a conventional production line, for instance, our engine has to be pushed manually -- thank God for this morning's Wheaties -- along to the next station.

On the other hand, every one of the torquing procedures is fail-safed by a computer monitoring system. Before you can screw the rocker arms to the head, for instance, you use a scan gun to calibrate the powered torque wrench. Not only does the computer inform the gun that 30 Newton-metres (yes, even GM has gone metric) of torque is the required amount of twist, it monitors that you're repeating the procedure exactly 16 times. Do it less -- or more -- and you will get a red light informing you, as it did me, of the aforementioned klutziness. You can't leave that substation until the issue is rectified and, at the very end of the entire build, the computer knows that a total of 367 torquing procedures were required for that particular engine and it checks to see if all have been tightened correctly. It even stores the information in case of future warranty issues.

Even more impressive, though, are the various jigs, guides and protectors the technicians have contrived to make the assembly process as idiot-proof as possible. Installing the camshaft -- a tedious procedure for the backyard mechanic -- is a doddle thanks to the guide GM has fashioned. An ingenious ring compressor and connecting rod protector, meanwhile, make it literally impossible to damage either the cylinder wall or the crankshaft bearing surfaces when even you-know-who is hammering the piston into the block. Even something as relatively inconsequential as the electronic "knock" sensor has its own jig so that, after it's bolted on, its outlet is perfectly aligned for the wiring loom it will eventually have to join.

Of course, the highlight comes after the assembly is complete. The last production line item is signing your name to the back of the intake manifold (some poor ZR1 owner is going to wonder who David Booth is). And, finally, there's joy/rapture/cold clammy relief when the engine starts for the first time. For gear heads of all stripes, it's nirvana.

GM REVEALS SOME PLANS FOR $2 BILLION INVESTMENT

GM is investing $84 million at the Flint Engine Operations
plant to increase 1.4-liter engine capacity. The Ecotec
1.4-liter turbocharged engine is used in the Chevrolet Cruze Eco.

By Suzanne Ashe, car-tech-blog - General Motors on Tuesday announced a $2 billion investment for plant improvements, and to be saved or add 4,000 jobs, in 17 U.S. states.

The automaker today announced plans for where some of the money will be allocated.

GM will invest $109 million in its operations in Flint and Bay City, Michigan, to suppport engine production for current and future fuel-efficient small cars produced for the U.S. market. The investment will also save or add 96 jobs at the two sites, GM said in a release.

The company will use the bulk of the investment, $84 million, at the Flint Engine Operations to increase 1.4-liter engine capacity. Bay City's investment of $25 million is for connecting rods and camshafts used in the engine.

"This investment marks the second major increase in engine and engine component output in less than six months -- a sign that GM is moving quickly to meet growing demand for more fuel-efficient cars," said Terri Burden, Flint Engine Operations plant manager.

ADVANCED TIRE SAVES BIG BUCKS FOR CHEVY CRUZE DRIVERS

Ultra-efficient tires help deliver hybrid-like fuel efficiency

By General Motors of Canada - With gas prices near or exceeding $1.40 per litre, the efforts of GM engineers to boost fuel efficiency on the Chevrolet Cruze Eco compact are adding up.

GM tire development engineer Chuck Lantz and his team worked with tire manufacturers to produce an industry benchmark tire that boosts Cruze Eco's overall fuel efficiency. The new tire, along with other fuel efficiency enhancements, contributes to the eight per cent improvement of fuel efficiency on the Cruze Eco.

"This tire is way beyond anything in its category," said Lantz. The Cruze Eco tires make use of special polymers built into the tread compound to reduce rolling resistance, which means less energy is required to keep the tire moving.

So what makes the tire unique? Typically, improving one facet of tire performance like rolling resistance requires sacrifices in other areas like traction in snow and stopping distance. Not so with the leading-edge Cruze Eco tires.

"Thanks to the high-tech polymers we used, we were able to create a high-efficiency set of tires without making tradeoffs in other important areas like tire-braking traction and all-weather handling," said Lantz. "As far as the ride goes, these tires are as smooth as any tire on the road today."

The tires represent one of many fuel-saving technologies that help the Cruze Eco obtain best in class highway fuel efficiency of 4.6 L/100km. With a starting suggested price of $19,495, Cruze Eco offers hybrid-like fuel efficiency without the premium price tag. Other innovations that make the Cruze a fuel efficiency and energy-efficient rack-mounted electric power steering.

Lantz, an incurable tinkerer, grew up tearing apart and rebuilding childhood toys to figure out what made them tick.

"A curiosity about how things work is second nature to me," he said. "In my work, I'm always looking at how we can make things better for our customers."

Before joining General Motors, Lantz spent more than 20 years at a major tire manufacturer. "Back then, I worked with many automakers," said Lantz. "That experience taught me that GM knows more about tires than any other automaker by far."

CHEVROLET CANADA BEGINS TAKING ORDERS FOR AWARD-WINNING VOLT

By General Motors of Canada - Starting today, participating Chevrolet dealers in seven key launch markets across Canada will begin taking orders for the all-new 2012 Chevrolet Volt. With an MSRP starting at $41,545, the Chevrolet Volt is the industry's first electric vehicle with extended range capabilities. Unlike other electric vehicles in the market, the Chevrolet Volt will never leave anyone stranded with a depleted battery.

"The Chevrolet Volt is an award-winning, leading technology recognized as the only electric vehicle that can meet all your driving needs," said Kevin Williams, president and managing director at GM of Canada. "The Volt delivers it all: dramatic greenhouse gas reductions, a revolutionary propulsion system, progressive styling, spirited driving dynamics, and industry-leading safety, premium amenities, and user-friendly technologies."

The Chevrolet Volt was recently named 2011 World Green Car of the Year at the New York International Auto Show. Prior to receiving this honour, the Volt had already captured many major awards in North America, including:

• North American Car of the Year


• Motor Trend 2011 Car of the Year


• Green Car Journal's 2011 Green Car of the Year


• AUTOMOBILE Magazine 2011 Automobile of the Year


• Car and Driver 10Best


• Popular Mechanics 2010 Breakthrough Technology


• Ward's 10 Best Engines, recognition for Volt's advanced powertrain system

The Volt will initially be available to retail customers in the marketing areas for Vancouver, Victoria, Toronto, Oshawa, Ottawa-Gatineau, Montreal and Quebec City in the third quarter of this year. Within twelve months of the retail launch, Volt will be available at dealerships nation-wide. It will be offered in one very well-equipped standard trim level, along with two option packages: a Premium Trim Package and a Rear Camera and Park Assist Package.

The Volt is in a class by itself

The Chevrolet Volt is not a hybrid. It is a one-of-a-kind, all-electrically driven vehicle designed and engineered to operate in all climates, with a range of up to 580 km. Powered by GM's revolutionary Voltec propulasion system, it consists of a 16-kWh, lithium-ion battery pack and electric drive unit that provide pure electric range between 40 and 80 km, depending on terrain, driving techniques and temperature. A 1.4L gasoline-powered engine extends the range up to an additional 500 km on a full tank of fuel by operating the vehicle's electric drive system until the car can be plugged in and recharged or refueled. This distinguishes the Volt from electric-only vehicles, which cannot be operated when recharging is not immediately available - such as during a power interruption or on a long-distance trip.

"The Chevrolet Volt makes the electric driving experience as productive, efficient, intuitive, safe and fun as any premium vehicle its size in the market today," said Marc Comeau, vice-president of sales, service, and marketing at GM of Canada.

Every major element of the Volt was designed and analyzed for efficiency, including its highly aerodynamic exterior, lightweight wheels, specially designed tires, energy-saving premium stereo system, and more. This attention to detail makes the Volt one of the most aerodynamic and energy-efficient vehicles in the market.

The Volt connects with owners 24/7

There is much more technology inside the Volt than its electric propulsion system. Intuitive features such as high-resolution displays, connectivity and the ability to monitor and control vehicle functions remotely redefine how owners interface with their vehicles.

Key technologies include:

• Touch-control switch system on the center console


• High-resolution, seven-inch, full-color LCD reconfigurable Driver Information Center display. The display shows electric-only range, fuel economy, extended-range, trip information, tire pressure information and other key vehicle messages


• High-resolution, seven-inch, full-color, center stack-mounted touch screen display that serves as the interface for infotainment and cabin climate controls. An Efficiency (Leaf) switch accesses energy usage, power flow and charging screens - all easy to use and understand


• Charge modes are customizable according to need and electricity rates for efficient programming and lower costs.


• A key fob that allows drivers to remotely start the vehicle and precondition the cabin based on outside temperatures


• An exclusive OnStar MyLink mobile app that enables owners to engage with the Volt functions using a smart phone

Volt warranties bring value and peace of mind

Volt owners receive outstanding battery and vehicle limited warranty coverage. In addition to the eight-year/160,000 km limited warranty on the Volt's 16-kWh lithium-ion battery, Chevrolet offers:

• Three year/60,000 km bumper-to-bumper coverage


• Five-year/160,000 km roadside assistance and courtesy transportation


• Five-year/160,000 km limited gas engine coverage


• Six-year/160,000 km corrosion protection coverage
  

VOLT'S 36-MONTH RESALE VALUE SET AT $17,000

The Volt's estimated residual value is 42 percent of the sticker price.

By Car Tech Blog, Automotive News - A 2011 Chevrolet Volt will be worth just over $17,000 after 36 months, the length of a typical lease, says Kelley Blue Book. That would be 42 percent of the car's $41,000 sticker price.

Eric Ibara, director of residual value consulting at Kelley, says the residual value projection seems low. But the first 200,000 Volts sold will qualify for a $7,500 federal tax credit, effectively dropping the sticker to $33,500.

Using that number, KBB's projection means the Volt will keep 51 percent of its value, better than some rivals. For example, the 2011 Toyota Prius, the industry's best known hybrid, has a projected residual of 46 percent after 36 months, Kelley says. The 2011 Ford Focus' residual is projected at 37.5 percent.

Residual values of those cars have been hurt by an expected wave of smaller, fuel-efficient vehicles that will be launched this year and next. But the Volt "has new technology that is going to be attractive to people looking for a three-year-old vehicle," Ibara says.

Kelley's projection assumes gasoline will sell for around $4 per gallon three years from now.

BREATHING RIGHT HELPS CHEVROLETS GET MORE FROM LESS

Variable Valve Timing Improves Drivability &
Fuel Efficiency While Reducing Emissions

By General Motors of Canada - Athletes understand that proper breathing is critical to maintaining peak performance under all conditions and so do Chevrolet powertrain engineers. Getting air in and exhaust gases out of the combustion chamber under all speeds and driving conditions is essential to outstanding drivability and fuel efficiency with low emissions.

"Whether powered by four, six or eight cylinders, virtually every current Chevrolet car and truck, from compact cars including the award-winning Cruze to the full-size Suburban SUV, features variable valve timing (VVT) on its engine to optimize its breathing," said Sam Winegarden, General Motors executive director of Global Engine Engineering.

The camshafts are driven by chains from the crankshaft to keep the valve opening in sync with the motion of the pistons in the cylinders.

Through continuous adjustments of the camshaft phasing, engineers can achieve smoother idle control without sacrificing the ability to breathe at higher engine speeds. This ability contributes to the 3.6-litre V6 in the Chevrolet Camaro generating 312 horsepower while getting a fuel consumption rating of 6.6L/100km on the highway.

Chevrolet's VVT system uses a hydraulic mechanism to twist the camshaft relative to the crankshaft position so that the valves can be opened and closed earlier or later. On dual overhead cam engines such as the Ecotec inline-four and the 3.0 and 3.6-litre V6, the intake and exhaust cams can be adjusted independently, allowing the valve overlap - the time that intake and exhaust valves are both open - to be varied as well.

The 60 degrees of camshaft adjustment available on the turbocharged 1.4-litre Ecotec that powers the Cruze enabled engineers to eliminate the conventional exhaust gas recirculation system to simplify the overall engine packaging - the way the engine fits in the car - and still reduce emissions.

"Bookending the Chevy lineup, the VVT-equipped Cruze Eco achieves the best in class highway fuel consumption rating of 4.6L/100km while the full-size Silverado XFE pickup is rated at an estimated 9.1L/100km on the highway" said Winegarden.

EXPECTATIONS MEET REALITY

Chevy Volt excels in Mackinac Bridge round-trip test

By Bob Gritzinger, AutoWeek Magazine - Unless you've been living under a particularly thick rock for the past four years, you have no doubt heard, read and seen everything you could possibly want to know about the General Motors' green darling, the 2011 Chevrolet Volt.

Until now.

Up to this point, most of the stories about the Volt have been somewhat speculative, based on drives conducted under the watchful and overprotective eye of the General. Individual consumers' impressions have been largely colored by their pride of ownership and their righteous zeal to wring the maximum level of efficiency from their shiny electric chariots.

Now, with 2,000 Volts built since last December's start of production and 1,000 in consumers' driveways in seven states, it's finally time to get out on our own and put the Volt to the test in everyday use -- with no one chasing around after us with a giant extension cord to make sure everything is running right.

Know what? The thing works, surprisingly well. But there are a few caveats after a day of driving the length of Michigan's mitten, to the Mackinac Bridge and back.

First off, unless your neighborhood is temperate, your battery-only driving range will fall on the short end of the 25-to-40-mile scale. With an overnight charge on household current and with temps hovering in the mid-40s, we posted 26 miles on electric power before the 1.4-turbocharged gasoline engine fired up to spin the onboard generator to provide electric power to drive the trasction motor and propel the car farther down the road.

Got all that?

That said, under most circumstances, the transition from stored battery power to onboard-generated power is virtually seamless, as it ought to be, considering that the motor providing the locomotion doesn't change, just the source of energy driving that electric motor. The gasoline engine does drone at higher rpm on occasion, but typically, its operation is barely perceptible.

That doesn't change, regardless of distance traveled; the Volt rolls along with the same steady feel whether you're at mile 1 or mile 330.

That 330 number is significant, however, because that's just about the maximum highway range you can expect from a Volt before running the 9.3-gallon tank of premium unleaded gasoline dry. Depending on temperature and driving habits, you might see another 70 miles but not before running the Volt precariously low on fuel. We posted 36.5 mpg (with the 26 EV miles included) during a 560-mile trip.

When the Volt does run out of fuel and the gasoline-powered generator shuts down, unlike most cars, you're not immediately stuck on the shoulder waiting for a courtesy van with a gas can.

We ran the Volt dry, and although the instruments issued warnings, the speedometer never wavered from 70 mph as the car immediately tapped into the battery for extra power. Think of it as an electric reserve tank, designed to provide an extra three or four miles of range if you run out of gasoline. Sure enough, about three miles later, we ran low on reserve juise and safely slowed to a stop on the shoulder. After we added a few gallons of fuel on the roadside, the generator ran at maximum capacity for the next three miles to replenish the battery before the powertrain settled back into normal operating mode. Very little drama.

The bottom line: Chevy's little electric sedan might seem like a pricey science experiment, but for us, it's earned its real-world stripes. Next time, we're not stopping after we cross the Mackinac Bridge.

SEOUL-FUL CHEVY

Korea's Mi-ray concept unlocks bow-tie magic

By Autoweek Magazine - Leave it to designers in Seoul to summon some of the best of Chevrolet's Detroit soul.

The Mi-ray concept was designed at General Motors' Korean studios and revealed at the Seoul motor show. It celebrates Chevy's centennial in high style with some dramatic salutes to the past -- the 1963 Chevy Monza SS and the '62 Corvair Super Spyder, plus generations of Corvettes and modern fighter jets melded together for the distinctive theme.

But the Mi-ray (which means "future" in Korean) also looks ahead. The wedge-shaped design has scissor doors and an advanced take on the familiar Chevy grille. The bold face is flanked by LED lights that angle back, and the front is set off by a prominent fascia. The body was constructed with extensive use of carbon fiber over an aluminum chassis.

Power comes from a turbo 1.5-liter four-cylinder that works with a pair of electric motors running on a mid-mounted lithium-ion battery. There is also a dual-clutch transmission, and the car can switch from front-wheel to rear-wheel drive.

MOST CHEVROLET VOLT PATRONS ARE NEW TO THE BRAND

By Chris Woodyard, USA Today - If nothing else, this statistic alone must have General Motors feeling pleased about its decision to make a breakthrough electric vehicle; almost nine out of 10 customers who come to Chevrolet dealers to see the electric Volt are new to the brand.

As a result, Chevrolet is making a special effort to make sure there are enough Volts at dealerships as demonstration cars. More than 550 are being dispatched already.

The Chevrolet Volt demonstration units are a popular showroom draw for dealers as they let consumers look, touch and drive the electric car with extended-range capabilities. It's part of the plan to gain exposure for the vehicle and the Chevrolet brand.

Almost nine of 10 customers who traded in a vehicle as part of their purchase are new to the Chevrolet brand. That's why hundreds of Volts that could be sold to individuals are tagged for dealers as demo vehicles, meant for customer exposure to the Volt and to other Chevy products they might otherwise not see.

"The Volt is clearly bringing new customers to our dealership," said Rick Alpern, general manager of Keys Chevrolet in Van Nuys, California. "We are seeing customers who own competitive brands that have never visited a Chevy dealer before. Now they have a Chevy on their shopping list because of the Volt."

Chevrolet dealerships in the initial launch markets of California, Connecticut, Maryland, Michigan, New Jersey, New York, Texas, Virginia and Washington, D.C. have taken delivery of more than 550 dedicated Volt demonstration vehicles for customer test drives. By the end of the year, more than 2,500 U.S. dealers will receive a dedicated Volt demo.

Chevy expects to deliver Volts in all 50 states by the end of 2011. Deliveries begin in Virginia, Maryland, Delaware, Pensylvania, North Carolina, South Carolina, Georgia, Florida, Oregon, Washington and Hawaii in the third quarter.

MASTER OF HORROR STEPHEN KING LIKES HIS CHEVY VOLT AND SARASOTA

Author Stephen King charges his wife's Chevrolet Volt in the
City Parking Garage on Palm Avenue in Sarasota on Tuesday.
King who spends winters in his house in Casey Key, is one of the
few - so far - to plug into the city-provided charging stations.

By Michael Pollick, Herald Tribune - The King of Horror, who spends his winters on Casey Key, wheeled his Chevrolet Volt -- black, of course -- into the city of Sarasota's new Palm Avenue parking garage.

He pulled into one of four free electric-vehicle charging stations on the first floor of the 700-car garage, switched off his car, and plugged in the long orange extension cord draped on the wall next to the space.

On the roof of the building, a 10-kilowatt array of solar electric panels was generating much of the power for the garage, including the charging stations.

"I just love it because every time you do it, it is like saying to the oil cartel, 'Here, stick this in your eye,'" author Stephen King told the Herald-Tribune. "It is like a license to steal."

Right now, it is difficult and expensive to get your hands on one of the few brand-name electric cars that are just starting to show up -- the Chevy Volt, Nissan Leaf or Tesla. But judging from surging interest in the most fuel-efficient, gasoline-powered cars this spring, the charging stations at the parking garage and others planned by city government will not go unused for long.

"It really started in mid-to-late February, when gas prices became headlines," said Jessica Caldwell, senior analyst at Edmunds.com, an online consumer automotive website. That demand also is reflected in Edmunds' web audience. "Interest in hybrids, electric vehicles, small cars -- all that has been increasing."

King, whose scary novels have made him one of the best known celebrities in the world, does not do many interviews. But Tom Harriman, who installed the solar electric system for the city, talked the author into driving the vamily Volt into town to help highlight the availability of the charging stations, largely unused since the city opened the new garage in January.

"Right now, due to the lack of vehicles, Mr. King would be the first one to plug into the unit itself," Harriman said.

But Sarasota's Chris Sharek, another new electric car owner, actually plugged in his nearly identical black Chevy Volt a few minutes before King rolled up. Sharek paid just under $50,000 to get his hands on the car, which he had to special-order from New Jersey.

"Instead of spending another 40 grand on a jeep, which I was ready to do, why not go ahead and get a car that has more technology and way better gas mileage?" Sharek said.

He and King compared notes on their vehicles while news people circled around for photos with the mayor at the informal gathering.

Governments, both local and federal, are encouraging vehicle use by subsidizing charging stations like the four in the garage -- just the first in a series that the city will install during the next year, said Sarasota Mayor Kelly Kirschner.

"We are looking at areas like the bayfront park by Marina Jack, the Whole Foods garage -- which will always be free parking, too -- and possibly the Lido Beach area and St. Armands," Kirschner said.

Early adopters like King are paying full list price of around $43,000 US for their electric cars, plus extra fees for shipping and delivery.

"As prices come down and you have more competition," Kirschner said, "you'll see better pricing."

"Hopefully this is another differentiating feature that will show our citizens and visitors that our downtown is truly a unique place."

King bought the Volt from Chevrolet about a month ago as a birthday present for his wife and fellow author, Tabitha King.

"In a way I am sorry I gave it to her," he said, "because I like to drive it so much."

A.J. FOYT AGREES TO DRIVE INDY 500 PACE CAR

By Michael Marot, doaneline.com - A.J. Foyt doesn't mind being The Replacement as long as he gets to lead the Indianapolis 500.

On Friday, the four-time race winner accepted an invitation to step in for Donald Trump as the celebrity pace-car driver, ending a controversy before the May 29 race.

It was an obvious choice.

"I never knew officially who was going to drive it. I knew they said Donald Trump, but, you know No. 2 can wind up winning the race and I've done that before," Foyt said in a telephone interview with The Associated Press while attending festivities at the Kentucky Derby. "So if I outdueled him, I'm very happy about it."

Foyt, Rick Mears and Al Unser are the only four-time winners in race history and this year marks the 50th anniversary of Foyt's first win at Indy. He made a record 35 consecutive starts in the 500, and this will be the 54th consecutive year he's competed at the track as a driver or an owner.

Plus, Foyt was one of the most vocal supporters of the Indy Racing League following the split from the rival and now defunct Champ Car series.

Once Trump withdrew Thursday, that opened the door for Foyt.

Indianapolis Motor Speedway president and CEO Jeff Belskus said he consulted with IndyCar officials, representatives of Chevrolet, manufacturer of the 2011 Camaro Convertible that will lead the cars, and the speedway's board of directors before making a formal invitation.

"A.J. is the perfect choice." Belskus said. "There's a whole lot of considerations that go into it. Saying he's the perfect choice that's Jeff Belskus' perspective on this and what I think is the perfect choice."

The decision allows race organizers to switch the focus from Trump's potential presidential aspirations back to the centennial celebration of the first Indy 500. Trump was chosen as the pace-car driver last month, but backed out after opponents called him too divisive and too much of a distraction.

Those that wanted The Donald out included Indiana Rep. Jeb Bardon, a Democrat who represents the area around the historic 2.5-mile oval. He gave a floor speech last week in the Indiana Legislature calling for a change. A Facebook page dedicated to dumping Trump drew more than 18,000 followers.

Trump drew criticism for questioning whether President Obama was born outside the United States. He has also questioned whether Obama was qualified to attend two Ivy League schools.

Belskus said he never anticipated the backlash ... or Trump's political views ... becoming an issue leading up to next Sunday's opening day.

"Mr. Trump is a remarkable person and people seem to either just love him or hate him, but it's very passionate in both directions," Belskus said. "He has a lot of supporters. Part of it is with the things he's been doing over the past month, six weeks with the potential presidential bid that has brought a lot of attention to it and that, frankly, we didn't expect."

It's the first time the speedway has changed pace-car drivers since 2001, when injured golfer Greg Norman could not drive. Race organizers then put Elaine Irwin Mellencamp in the car as the first female to drive the car.

When Foyt finishes the honorary pace laps, he will likely get out of the car, walk back to his spot on pit row and put on his headset so he can talk to his two drivers ... Vitor Meira and Bruno Junqueira, both Brazilians.

By picking Foyt, race organizers are also bringing back the tradition of using former winners in the pace car.

While Foyt joked Friday that he still expected to be racing 50 years after his first Indy win, there was no question one of the most recognizable people in motorsports took the job seriously.

"I'll be leading the race again is all I can say," he said. "It'll probably be pretty nerve-racking. I'm just very honored I can do something back for the speedway because the speedway is what made A.J. Foyt and my whole racing career."

CHEVROLET CRUZE RECALL CALLED MINOR

By Karl Henkel, Boston Herald - A recall of every Chevrolet Cruze built at the Lordstown complex should not hamper sales or frighten drivers, an industry analyst said.

Aaron Bragman, an analyst at automotive forecaster IHS, called General Motors Co.'s Wednesday night recall insignificant and said it shouldn't have an impact on sales, which set record numbers in April, selling 25,160 units.

"Recalls don't have the same impact on consumers as they used to," he said Thursday. "All of the past recalls have really had a numbing effect."

Bragman said the type of recall, deemed precautionary by GM, also plays a factor. "It's not as if cars are catching fire," he said.

The recall, which affects all 154,112 Cruze modfels, was clarified Thursday by GM spokesman Alan Adler. He said the decision was made to ensure the intermediate steering shaft was preoperly installed. The problem could cause a driver to lose steering power.

Of the recalled vehicles, 120,295 of them may have an additional problem with automatic-transmission shift links improperly installed. That problem could cause the vehicle to shift gears unexpectedly, GM says.

Adler said the steering problem should not be confused with the 2,100 Cruzes recalled in April, when one steering wheel detached from its column.

GM decided to announce the steering recall Wednesday, along with the transmission recall.

Terry Woychowski, GM vice president of global quality, had conducted a quality-control inspection at Lordstown earlier in the week. Adler said the inspection and recall did not have a cause-and-effect relationship.

The company alerted customers before a release from the National Highway Traffic Safety Administration. Adler said that doesn't happen often, but GM wanted to be up front with customers. Adler said the issues arose during manufacturing, but declined to go into details. "I don't like to do finger-pointing," he said. "We're thinking about the customer and the vehicle."

Lordstown had previously installed a Dynamic Vehicle Testing system, which can identify engineering-related problems.

GM representatives said no accidents or injuries have been reported because of the two-tiered recall. The company and dealership representatives both said recall inspections shouldn't take more than an hour.