GM recalls 475,418 Chevy Cruze for engine shield

General Motors Co is recalling 475,418 of its popular compact Chevrolet Cruze sedans to modify the under-engine shield so flammable liquids are not trapped in the engine compartment, the automaker said on Friday. The recall covers 2011 and 2012 Cruze sedans that were built at GM's Lordstown, Ohio plant from September 2010 through May 2012. The recall affects 413,418 vehicles sold in the United States, 61,299 in Canada and 701 in Israel. Cruze models sold around the world that were made at plants other than the Lordstown one do not have the same design and are not believed to have the same issue, a GM spokesman said. But about 10,000 Chevy Cruze sedans sold by GM's Australian unit, Holden, may be affected and Holden is looking into the issue, the GM spokesman said. The engine shield on the models affected has the potential to trap engine fluids and raise the risk of a fire, GM said. GM said no crashes or injuries have been reported in relation to the issue. Owners will begin getting recall notices in mid-July. A fix of the problem will take about a half hour at a Chevrolet dealership, GM said.

Brake caliper bracket identification Chevy Trailblazer

Subject: Brake caliper bracket identification

Vehicles Involved: 2002-2005 Chevrolet Trailblazer, 2002-2005 GMC Envoy,
2004-2005 Buick Rainier, Oldsmobile Bravada, Isuzu Ascender

Condition: Caliper bracket

Repair Procedure: There are two calipers listed for the above platforms, FRC11237 and FRC11237A.

Both calipers are physically the same except that the bracket is different.

The change to the bracket was made to accommodate the larger rotor diameter.

Caliper FRC11237 will fit most platforms with the long wheel base or with extended cab.

The bracket of the FRC11237 can be easily identified with a protruding tab as compared to the FRC11237A where the tab is even with the bracket.

One other detail is the distance between the mounting holes and the slider pin, the distance of FRC11237 is 3 inches as compared to the dimensions of the bracket supplied with FRC11237A, the distance is 3.250".

TSB Bulletin BPI 12-03

GM to replace 120-volt charging cords on Chevy Volt

General Motors said on Thursday it will replace the 120-volt charging cords for most Chevrolet Volt plug-in hybrid cars.

The exchange affects all 2011 model plug-in electric hybrid Volts and some 2012 models, GM spokesman Randal Fox said.

He did not know the total number affected, but said it was fewer than the more than 11,000 Volts sold so far. The car sells for just under $40,000 before federal subsidies of $7,500.

Yahoo Autos first reported the swap, citing consumer complaints about overheating cords. However, Fox said the exchange was not to address overheating.

"It's just an effort to offer a more consistent charging experience," Fox said. "It's not a safety recall. It's more of a customer-satisfaction program.

"We made some enhancements to the design to add some durability and reliability," he said. For example, GM increased the cord's cable size to enhance durability, he said.

The National Highway Traffic Safety Administration opened an investigation on Nov. 25 into the safety of the Volt's battery pack after its own repeated tests uncovered fire risks.

The fires occurred after NHTSA crash tests or other tests where the car's lithium ion batteries were purposely damaged.

NHTSA closed its probe in January without finding any defects and expressed satisfaction with GM's fix to better protect the lithium-ion battery pack by adding steel reinforcements and other steps to prevent coolant fluid from leaking and triggering a fire.

Some felt the probe was unnecessary, but the Volt has received outsized attention despite its small sales totals as many Republicans have criticized the car's sales and the federal subsidies its buyers receive.

GM idled the Volt assembly plant in Michigan for five weeks due to weaker demand.

GM CEO Dan Akerson in January said the Volt got "disproportionate scrutiny" because it had become a surrogate for election-year politics and commentary on Obama administration policy.

GM has showcased the electric car as the centerpiece of efforts on fuel efficiency and cutting edge technology.

Volt owners will be notified of the exchange in the next few weeks and as they bring in their cars for the battery enhancement they will also receive the new cords, Fox said.

The new cords will not change recharging time and the exchange does not affect the 240-volt cords, he said.

GM recalls Chevy Sonics to check for missing brake pads

General Motors is recalling 4,296 Chevrolet Sonic subcompact models to inspect for missing brake pads. The missing part could lengthen the stopping distance, potentially contributing to a crash, the company said today in a statement.

The recall targets 2012 Sonics. The subcompact car -- a replacement for the South Korea-built Chevy Aveo -- went on sale this fall.

GM said the company isn't aware of any crashes or injuries resulting from missing pads. The problem was discovered when a rental Sonic was brought in for warranty service.

The missing brake pads -- part of a subassembly of components -- fell off before the cars were assembled and had remained unnoticed at the bottom of containers being shipped to the Orion Township, Mich., factory, said GM spokesman Alan Adler.

Korea Delphi Automotive Corp. is one of two suppliers that provides GM with brake assembly for the Sonic. GM declined to name the second supplier.

Delphi spokesman Lindsey Williams said in a statement that Korea Delphi -- a joint venture between Delphi International and two Korean stakeholders -- isn't associated with the recall of the GM Sonic.

GM's Adler also said the recall isn't a supplier issue and the company has since updated its processes in the assembly plant.

"This has been fixed by adding a clip to the shipping containers," Adler added.

Customers affected by the recall will start receiving letters from their dealers Jan. 14. GM said it expects "very few cars" to be affected by the problem.

"Dealers will inspect the front brakes for missing inner or outer pads," GM said in a statement. If a pad is missing, the dealer will install a new one, and if necessary, a new brake caliber or rotor. There will be no cost to the customer, the company said.

The Sonic is the only subcompact car built in the United States.

GM moved production of the redesigned small car to Michigan after striking a plant-specific deal with the local union at the Orion Township factory.

As part of the agreement, 40 percent of the plant's work force earn an entry-level wage, which starts at $15.78 an hour -- well below the base $28-an-hour pay for veteran auto workers.

The factory, which employs about 1,590 hourly workers, also builds GM's all-new compact car, the Buick Verano.

GM recalls 15,627 Chevrolet Captiva crossovers

General Motors is recalling 15,627 Chevrolet Captiva crossovers from the 2011-12 model years because the power steering fluid could overheat under certain conditions, leading to an engine compartment fire, the automaker said today.

The recall includes 3,150 vehicles sold to rental car fleets in the United States. No fires have been reported in the United States, where the Captiva is available only for fleet sale. The vehicle is built in Ramos Arizpe, Mexico.

GM spokesman Alan Adler said if the vehicle is inadvertently driven with the transmission in manual mode and left in first gear for a prolonged period, the vehicle's power steering fluid may overheat. This could cause the fluid reservoir to leak and start a fire if an ignition source is present, the company said.

Dealers will replace the power steering fluid loop cooler with a more efficient cooler at no cost.

Malibu will get Eco and turbo options

General Motors is deploying an array of engine choices to help its next-generation Chevrolet Malibu stand out in the crowded market for mid-sized sedans.

The Eco version of the 2013 Malibu is scheduled to go on sale in February or March. It will have a 2.4-liter, four-cylinder engine and GM's mild hybrid system. That trim level will be sold alongside the 2012 Malibu for about six months.

At that point GM will begin offering more engine choices for the 2013 Malibu, and the old car will be phased out.

By late summer GM will offer a new 2.5-liter Ecotec four-cylinder as the base engine for the 2013 Malibu. And last week GM said it eventually will offer a new 2.0-liter turbo engine.

GM wouldn't discuss the specifications or timing for the turbo. But the engine is expected to be available as an option by the end of 2012.

The turbo engine will offer a more powerful option to Malibu buyers who might miss the six banger, which is offered in the current Malibu but is being phased out for the redesign.

The Malibu will join the Hyundai Sonata as the only other entry among top-selling mid-sized sedans to offer a turbo.

The staggered launch comes at the urging of GM CEO Dan Akerson, who pressed product developers to accelerate the introduction of the redesigned Malibu. The engine in the Eco version was ready for production earlier than the others.

The first-quarter launch of the Eco trim level allows GM to debut the sedan ahead of a few key rivals. Redesigns of the Ford Fusion, Honda Accord and Nissan Altima are scheduled to be introduced later in 2012. New generations of the top-selling Toyota Camry and the Volkswagen Passat debuted this fall.

"It gives us the opportunity to launch the car in a little bit of clear space as a technology and fuel economy story," said Russ Clark, Chevy's director of marketing for mid-sized and performance cars and compact crossovers, during a Chevy event here.

The Malibu Eco uses a small electric motor, a lithium ion battery and a stop-start system to boost fuel economy by about 12 percent, to 25 mpg in city driv-ing and 37 mpg on the highway, GM estimates. It's priced at $25,995, including a $760 destination charge.

The current Chevy Malibu, launched in 2007, played a major role in the comeback of the brand's sedan lineup. The next-generation Malibu has a bolder, more muscular design that GM executives hope will set it apart from rivals in the segment.

GM sold 191,774 Malibus through the first 11 months of this year, up 2 percent from the same period a year earlier.

Cadillac diesel, would you want one?

One of the most interesting revelations to come out of the Los Angeles Auto Show last week: Cadillac is thinking about selling a diesel-engine vehicle in the United States.

It should come as no surprise that General Motors’ luxury brand is doing so.

After all, some of Cadillac’s primary competitors -- Audi, BMW and Mercedes-Benz – market outstanding diesel powertrains. And then there’s that little issue of higher fuel-economy and lower emissions.

Don Butler, Cadillac’s marketing vice president, said during an interview at the show that a diesel engine was under consideration for vehicles sold outside the United States. He quickly added that a diesel engine “could be a potential hedge in the U.S. because of diesel’s great torque, great performance with great efficiency.”

Butler made it clear that Cadillac will do whatever it takes to compete with the imports -- including having competitive powertrains.

“We absolutely mean it when we say we aim to compete with the best of the best without compromises. And if that means making the right powertrain choices, then those are the choices we will have to make,” he continued.

Back in the 1980s, GM’s diesel engine was an embarrassing failure -- a reliability nightmare that severely tarnished the image of Oldsmobile and Cadillac.

This time around, failure is not an option.

Cadillac has a strong, attractive product line -- the SRX, CTS, Escalade and the 2013 ATS and XTS sedans that land in dealer showrooms next year.

What’s missing is a diesel. And if Cadillac does enter the diesel arena, the engine must be nothing less than world class. It cannot afford a mistake as it builds the Cadillac brand across the globe.

Dealers: Chevy Volt fire investigation doesn’t faze customers

News of a federal investigation into a Chevrolet Volt that caught fire hasn’t spooked shoppers of the plug-in hybrid, several Chevy dealers say.

“No one has asked about it,” says Ronald DeTommaso, general manager at Atlantic Chevrolet-Cadillac in Bay Shore, N.Y., on Long Island. The store is one of the largest Volt dealers in the United States; it has sold more than 30 since the car’s launch in December 2010.

On Friday, the National Highway Traffic Safety Administration said that a Volt at one of its test facilities caught fire about three weeks after the agency had conducted a test crash on the car.

NHTSA said the crash damaged the car’s lithium ion battery, which led to the vehicle fire. Nobody was hurt in the blaze. NHTSA said it is the only case of a battery-related fire in a crash of a vehicle powered by a lithium ion battery.

Both NHTSA and General Motors have said the Volt is not more susceptible to fires than gasoline-powered vehicles. Nonetheless, NHTSA said it is working with GM and other automakers to minimize the risk of post-crash fires.

In a statement issued Friday, after news reports about the NHTSA investigation, Jim Federico, GM’s chief engineer for electric vehicles, said the automaker is working with the federal agency on its investigation.

“I want to make this very clear: The Volt is a safe car,” Federico said. He said GM has safety protocols for handling the battery after a crash and is working with other manufacturers “with the goal of implementing industrywide protocols.”

Jim Purves, a sales manager at Al Serra Chevrolet in Grand Blanc, Mich., said customers haven’t asked about the media reports of the Volt fire.

“I think GM did a great job by getting out there and quickly clarifying the situation,” he said.

Tom Cedar, general manager at All-American Chevrolet in Middletown, N.J., said only one customer had asked him over the weekend about the reports. The customer is planning to buy a Volt anyway, Cedar said.

“He wasn’t worried about it. He said, ‘Things like that can happen with any car,” Cedar said. “I don’t think it’s going to scare away customers.”

GM, Costco join to sell Chevy, GMC light trucks

Costco has launched a deal with General Motors allowing its members to buy certain Chevrolet and GMC light trucks through select franchised dealers at a so-called "preferred price" -- generally equivalent to the price that the automaker offers its suppliers' employees.

Rick Borg, vice president of the Costco Auto Program, on Tuesday said the popular warehouse club expects its members to buy more than 5,000 new Chevrolet and GMC light trucks under the program. It started Tuesday and will end Jan. 3.

Costco also is giving a $500 Costco Cash Card to members who participate in the program.

GM spokesman Jim Cain described the Costco promotion as a "brand-awareness program" and a first for GM.

'Great showcase'

"Costco provides a great showcase. It has millions of members nationwide," he said. "This gives us the opportunity to put vehicles on display and reach people in a unique setting outside of a dealership."

GM's "preferred price" is a discount that varies by product, Cain said. It is similar to special prices that employees of GM suppliers are eligible to receive, for example. The deal is not as deep as an employee discount, Cain said.

Eligible vehicles include the new 2011 and 2012 Chevrolet Silverado, Suburban, Tahoe and Traverse and GMC Acadia, Sierra, Yukon and Yukon XL.

Costco members who take advantage of the program can combine the lower prices with other GM rebates and incentives for which they are eligible.

To participate, Costco members must register with the Costco Auto Program online or by calling a special telephone number. They also must complete redemption forms and surveys after making the purchase to receive the $500 Costco Cash Card incentive.

Tracking conquests

Costco's Borg says the warehouse club traditionally surveys its members about their car buying experiences and preferences and will share aggregate results with GM.

"We'll survey every member who makes a purchase," Borg says. "We'll ask them if they were planning to buy a GM vehicle. If they weren't, we ask what they were planning to buy so we can figure out the conquest sales. In past promotions, conquest sales have exceeded 50 percent."

Borg says Costco has conducted similar programs for its members since 2007, including one with Volvo in November and December 2010.

The Costco Auto Program started in 1989 and arranges no-haggle prices on new and certified used vehicles with individual dealerships on behalf of its members. In 2010, Costco members bought 250,000 vehicles from more than 2,400 dealerships through the program.

Costco, of Issaquah, Wash., has 432 warehouse stores in 41 states plus Puerto Rico. Members pay annual fees of $55 or $110 to shop for a range of products at or through the club at discount prices.

General Motors, Penske join forces to bring Indy race back to the Motor City

Now that General Motors is out of bankruptcy and back in the auto sales race, another kind of race is coming back to its hometown. After a four-year absence, the Izod IndyCar Series is scheduled to return to Detroit June 1-3, 2012, to race a 2.1-mile circuit on Belle Isle, Detroit's island park in the Detroit River near downtown.

Chevrolet partnered with the Indy racing series and Penske Corp. in a three-year race deal.

"Chevrolet has a long, storied history in IndyCar racing," said Mark Reuss, president of GM North America. "This year we celebrated the shared centennial of Chevrolet and the Indianapolis 500. We're excited to see that history continue with the help of Penske Corp. and IndyCar."

Reuss said reuniting with race team chief Roger Penske "is very personal for me." His father, Lloyd Reuss, a GM president in the early 1990s, worked with Penske on the original Chevy IndyCar program.

"I remember standing around the pit area as a boy with my dad," Reuss said, "during those glory days when Chevrolet absolutely dominated."

With GM healing from bankruptcy, Reuss said he saw the opportunity to reconnect with what he sees as "part of our corporate DNA." Reuss said he "reached out to the man who I knew could make us a powerhouse once again," and contacted Penske last year.

The Indy Car engines will be prepared by Ilmor Engineering, which Penske co-owns. The Chevrolet Indy Grand Prix presented by shopautoweek.com -- an affiliate of Automotive News -- will headline the events on the weekend after the Indy 500

Chevy to market Spark mini EV in U.S.

General Motors said today that it will introduce an electric version of its Chevrolet Spark minicar in 2013, one of several announcements touting small, fuel-saving technologies.

The Spark EV will be the first all-electric vehicle for GM, which became a leader in electrification with its electric EV-1 in the 1990s and the 2010 debut of its plug-in hybrid Chevy Volt.

The EV will come after the gasoline version of the Spark, which is slated for a U.S. launch "mid-year" 2012, Chevy spokesman Michael Albano said.

The gas-powered Spark is now sold in Korea, China and Latin America, will be slotted in Chevy's U.S. lineup below the subcompact Sonic, which went on sale in August. It will get a 1.2-liter, four-cylinder engine.

GM unveiled its EV plans to hundreds of international journalists in Detroit this week in advance of Chevy's 100th anniversary celebration on Nov. 3.

Two other announcements underscored how the Chevy brand is transcending its trucks-and-SUVs image as GM looks to grow sales globally:

• Chevrolet will introduce a new family of small-displacement gasoline engines through the end of this decade. The family will include three- and four-cylinder engines ranging from 1.0- to 1.5-liters in size. The three-cylinder versions are not currently planned for sale in the United States.

• GM said that its personal mobility concept, the EN-V, will get a Chevy badge. GM said it has begun work on the second generation of the two-seat, electric EN-V, which is short for Electric Networked-Vehicle. GM envisions the podlike concept as a long-range solution for traffic-clogged megacities.

Spark competition

GM is joining several automakers with plans to market all-electric vehicles as the U.S. government prepares to finalize tougher fuel economy requirements for light vehicles through 2025.

Tesla Motors and Nissan Motor Co. are already marketing electric vehicles.

Ford Motor Co. plans an all-electric version of the Focus compact car beginning in 2012. Toyota Motor Corp., Mitsubishi Motors Corp. and Kia Motors Corp. are also readying all-electric vehicles for sale in the United States.

In January, GM CEO Dan Akerson said the automaker was developing an all-electric vehicle for the United States, giving GM another 'green' model to complement the Chevrolet Volt.

The Volt is an extended-range sedan with a gasoline engine designed to run primarily on battery power. When the battery is depleted, the gas engine recharges the battery. It went on sale in December.

In August, GM said the Cadillac Converj concept, a luxury coupe with extended-range electric vehicle technology, would be produced and marketed as the ELR. The automaker said the ELR program was just getting underway and declined to provide a timetable for its U.S. rollout.

GM's electric menu

Jim Federico, head of global electric vehicles for Chevrolet, said the Spark EV would be rolled out in key countries and urban markets where low speeds and shorter distances dominate driving habits. California will be focal point in the U.S., he said.

He said GM's strategy is to offer a wide menu of electrified vehicles, ranging from pure EVs to the extended-range Volt and the light hybrid e-Assist technology, launched this summer on the Buick LaCrosse.

"We understand the path to electrification includes a full range of technologies," he said.

The small-displacement Ecotec engines that GM plans to introduce in coming years will use direct injection and turbocharging to boost fuel economy. The new family of engines will replace three engine families currently in use, Federico said.

GM said it aims to eventually sell more than 2 million of the new engines a year worldwide by the end of the decade.

NHTSA upgrades probe of 382,000 Saturn Ion cars

U.S. safety regulators have upgraded an investigation more than 382,000 Saturn Ion cars for possible steering problems.

The National Highway Traffic Safety Administration said it opened the engineering analysis after it and Saturn, a brand General Motors discontinued in 2009, received more than 4,000 complaints about sudden loss of electronic power steering assist in cars from model years 2004 through 2007.

Sixteen of the complaints said the power steering warning lamp had illuminated before or during the loss of power steering assist and the increased effort required to steer contributed to a crash, according to documents filed by NHTSA. Two of the crash claims indicated the driver was injured.

NHTSA also said GM had received 17,385 warranty claims related to the issue.

A GM spokesman said the automaker was cooperating with NHTSA.

Last year, GM recalled 1.05 million Chevy Cobalt and Pontiac G5 vehicles to correct a defect in the electronic power steering assist motor, according to NHTSA. The defect was described as a buildup of brush debris mixed with oily material that caused the motor to stop functioning; "the same problem identified in the current subject vehicles," NHTSA said.

Previously NHTSA investigated the sudden loss of power steering assist in model year 2005 through 2010 Chevrolet Cobalt vehicles.

In May 2011, GM provided safety regulators with complaint, warranty and power-steering system information for the Ion, as well as the Pontiac G6 and Chevy Malibu, according to NHTSA. In that response, GM indicated the power-steering system used in those vehicles was the same as that used in model year 2005 to 2010 Cobalts and Pontiac G5s.

NHTSA said it has duplicated the power-steering system failure in both a Cobalt and an Ion previously tested.

GM to develop electric cars in China with SAIC, but won't share Volt

General Motors Co. says it plans to develop an electric vehicle with Chinese partner SAIC Motor Corp., and it won't be just a copy of the Chevrolet Volt.

GM and SAIC announced the project in a statement today and during various media events from Shanghai this morning.

In a teleconference today with journalists, GM Vice Chairman Steve Girsky confirmed that GM will form a 50-50 joint venture with SAIC to develop an EV for the Chinese market.

That vehicle will be designed by the Pan-Asia Technical Automotive Center (PATAC), a design studio in Shanghai run by the two partners.

The EV will be a new vehicle, not an adaptation of an existing model like the Chevy Sonic, Girsky said. But he did not indicate whether the vehicle would be a small city car, when it would be introduced or how much it will cost.

"New technology is expensive and high-risk," Girsky said. "We will utilize our partners...to lower our risk and development costs, and bring technology to the market more quickly."

As the project moves forward, GM will move ahead with its plans to import small numbers of the Chevrolet Volt into China.

No subsidy

Girsky said GM hopes to persuade the Chinese government to extend its sales subsidy to imports such as the Volt. "We are hopeful that China will consider extending incentives to all vehicles in the future," he said.

Girsky also emphasized that the Chinese government has not pressured GM to share the Volt's technology with its Chinese partners.

GM's collaboration with SAIC, which was launched in 1997, has been profitable for both companies. SAIC now is China's largest domestic automaker, and GM is China's biggest foreign automaker.

The partners produce Buicks and Chevrolets for sale in China, and they also produce a commercial microvan called the Sunshine, China's top-selling light vehicle.

GM plans to introduce 60 new and upgraded models in the country during the next five years, the company said during the Shanghai auto show in April. GM and SAIC operate ten joint ventures in the nation.

Girsky said GM is confident that it can safely share its intellectual property with SAIC. "This is not the first time that we've brought intellectual property into China," Girsky said. "We work well with this partner."

China ventures

Automakers including Daimler AG and Nissan Motor Co. have announced plans to add alternative-energy vehicles in China as the world's largest polluter seeks to reduce emissions. The government aims to have 1 million electric-powered vehicles on the road by 2015, according to the Ministry of Science.

Vehicle sales are forecast to slow this year in China, after sales-tax breaks and rebates for rural buyers ended in January and following central bank interest-rate rises.

Overall sales in the first eight months of the year rose 3.3 percent to 12 million units, with passenger-car sales gaining 6.1 percent to 9.2 million units, the China Association of Automobile Manufacturers said on Sept. 9. Deliveries climbed 32 percent last year.

The Shanghai GM joint venture introduced the Chevy Sail electric concept vehicle late last year. Vehicles developed under the partnership will be sold in China under Shanghai GM and SAIC brands, and GM also will use the architecture to build electric vehicles globally.

The agreement finalizes a nonbinding memorandum on cooperation for green-vehicle development SAIC and GM signed last November. At the time, SAIC agreed to buy a 1 percent stake in GM through an initial public offering held to make GM a public company again and cut the U.S. Treasury's stake in the company.

GM partners with battery supplier LG on electric vehicles

General Motors said today that it is partnering with its battery cell supplier, LG Group, to develop electric vehicles.

The agreement, signed Wednesday by GM CEO Dan Akerson and LG President Juno Cho, will “help GM expand the number and types of electric vehicles it makes and sells,” the automaker said in a statement.

It’s the second example this week of automakers looking for partners to help in developing more fuel-efficient cars, as U.S. regulators put in place stricter fuel-economy standards for later this decade. On Monday, Toyota Motor Corp. and Ford Motor Co. said they are partnering to build hybrid light trucks.

The pact with GM broadens opportunities for LG, which supplies battery cells for the Chevrolet Volt plug-in hybrid.

Staying ahead

Akerson has vowed to stay ahead of the competition on vehicle electrification. He’s pressing his team to reduce the cost of the Volt, partly through economies of scale by applying the technology across more GM vehicles. Earlier this month, GM said the Volt powertrain will be put on an upcoming Cadillac sedan.

The Volt’s success prompted GM and LG to collaborate further on vehicle electrification, leading to a formal alliance, GM said.

Last year, for example, the two companies worked together to develop a demonstration fleet of electric Chevy Cruze compacts, which were used as official vehicles during the G20 summit in Seoul. In its statement today, GM said it now is “market testing” those vehicles.

GM and LG engineers will work together on development of electric vehicle platforms and components, GM said. Vehicles born out of the partnership “will be sold in many countries,” the automaker said.

‘Consumers benefit’

Steve Girsky, GM vice chairman, said in the statement: “Consumers benefit by getting the latest fuel-saving technology faster if we work with the best suppliers and we save time and money in the development process.”

In the statement, Cho said, “We fully support GM’s goal to lead the industry in the electrification of the automobile.”

GM didn’t disclose terms of the agreement but said it does not involve any exchange of equity.

GM to test offering insurance for 1 year to buyers in Northwest

General Motors -- testing a new sales promotion -- is offering Oregonians and Washingtonians a new incentive to buy or lease a GM vehicle.

Any driver from the two states who buys or leases a new vehicle through Sept. 6 and titles the vehicle in either state will receive a free one-year automobile insurance policy from MetLife Auto & Home.

The offer is part of a GM pilot program to see if offering a year’s worth of free insurance boosts sales.

GM chose Oregon and Washington to launch the program because the automaker has had traditionally weak sales there, GM spokesman Tom Henderson said.

The offer includes 2010, 2011 and 2012 models, GM said.

GM's U.S. sales are up 17 percent this year in a market that has advanced 13 percent.

If the pilot is successful, GM would consider expanding the program to other markets, Henderson said.

The policy covers the vehicle and any driver as long as the initial customer owns or leases the vehicle. Drivers aren’t required to accept the MetLife insurance.

Any driver with a valid operator's license is eligible for the offer, Henderson said. Commercial and fleet customers are not eligible.

The insurance incorporates liability and physical damage coverage, exceeding the legally required amount of coverage in both states, GM said.

Liability coverage is capped at $100,000 per person, and up to $300,000 per occurrence. Collision coverage is limited to the value of the vehicle.

MetLife’s policy stipulates that if a vehicle is totaled within a year of purchase or before 15,000 miles, the insurer will repair or replace the vehicle without deducting for depreciation, GM said.

“This offer enhances the vehicle’s value proposition because our policy is considered one of the most comprehensive in the industry,” Bill Moore, president of MetLife Auto & Home, said in a statement. “Our new car replacement feature is a benefit not found in most auto policies.”

GM takes low-key approach to mild-hybrid technology

Stroll around the soon-to-launch 2012 Buick LaCrosse and look for the shiny logo that touts General Motors' latest gas-saving technology, eAssist.

You won't find one.

There's no badge. No attempt to brand eAssist as a breakthrough green technology -- even though the hybrid seems worthy of at least its own little green decal.

eAssist combines an electric motor-generator, brake regeneration and a menu of other little tricks to boost fuel economy by 25 percent, to 25 mpg in city driving and 36 mpg on the highway.

But Buick executives want to keep the focus on the car and let the technology sit quietly in the background.

"The focus isn't 'Come in and buy this new technology,'" Roger McCormack, Buick's product marketing director, said during a media event here. "It's 'Come in and experience all the same great things about the LaCrosse. And oh, by the way, here's a big boost in fuel economy."

It seems GM has learned from its mistakes.

Five years ago, GM rolled out "Hybrid" versions of the Chevrolet Malibu and Saturn Aura, based on an earlier, weaker version of the eAssist technology. Shoppers thought "Toyota Prius" -- until they found that the technology only eked out a few extra mpg.

Sales flopped.

This time, the term "hybrid" won't appear on the vehicle or in any of the upcoming LaCrosse advertising.

The 2012 LaCrosse goes on sale this summer with eAssist as the standard powertrain, along with a 2.4-liter, direct-injected 4-cylinder engine and six-speed transmission. Buyers can get a new, more powerful version of the LaCrosse's 3.6-liter V-6 (17 city, 27 highway) for the same price ($30,820, including freight).

Noticing the mpg

Sure, eAssist will get plenty of play when national ads roll out this fall. And GM will use dealer tutorial videos and live demos so sales folks can negotiate those "It's-not-exactly-a-hybrid" discussions with customers.

But I'll bet most buyers will pay only passing heed to how the technology works -- and will stare long and hard at that difference in mpg.

eAssist uses regenerative braking to charge a small lithium-ion battery stored in the trunk. The battery provides extra power to an electric motor-generator that takes the place of an alternator. It assists the engine with up to 15 hp when the car is accelerating onto the highway, for example.

The electric motor in the so-called mild-hybrid system never powers the car all on its own, unlike the electric motor in a full hybrid such as the Prius. In the LaCrosse, the motor only assists the gasoline engine.

That's why the LaCrosse's city mpg rating trails that of luxury competitors like the Lincoln MKZ hybrid (41 city, 36 highway) or the Lexus HS hybrid (35 city, 34 highway).

But the LaCrosse with eAssist also costs $4,000 to $6,000 less than those vehicles. Buick is betting that buyers will like their return on investment.

Evolving industry

There's one more reason why GM isn't making a "hybrid" fuss.

With the Obama administration mulling a 56.2 mpg requirement by 2025, these sorts of fuel-economy advances simply are becoming the cost of doing business.

Sheri Hickok, GM's vehicle chief engineer for mid-sized and full-size vehicles, puts it this way: "The industry is evolving to where fuel economy itself is becoming the message, not some special technology."

GM's next big SUVs to carry cost premium to meet fuel-economy rules

Analysts say GM will need to look at powertrain options so they don't detract from the overall fuel economy on its next generation large SUVs.

General Motors' next generation full-sized SUVs likely will carry a cost premium to meet new fuel-economy regulations, an analyst says.

GM said Thursday it will invest $331 million to retool its Arlington, Texas, plant to build the redesigned Chevrolet Tahoe and Suburban, GMC Yukon and Cadillac Escalade. The plant builds the current generation of those vehicles.

Although the automaker did not provide a time frame, industry sources say the SUVs will debut in 2013 as 2014 models.

"They will be more expensive to engineer and build because of the need for lighter weight materials," said Tracy Handler, an analyst at IHS Automotive. "I expect prices to be higher."

The fate of GM's full-sized SUVs had been in doubt due to high fuel prices and stricter government rules on fuel economy and emissions.

Overall, large SUV and SUT demand has plummeted after hitting more than 1 million units in 2003 and 2004, according to the Automotive News Data Center. Last year, U.S. sales of the Lincoln Navigator, Toyota Sequoia, Chevrolet Avalanche, GMC Yukon XL and other full-sized SUV and SUTs totaled 372,437units.

While volumes have dropped, analysts say the segment remains profitable.

At one point over the past year or so, industry sources said GM's full-sized SUVs would be dropped, replaced by a range of vehicles developed on GM's front-wheel-drive Lambda platform.

"We have customers who need full-sized SUVs for work and play," Chevrolet spokesman Mike Albano said. "We will continue to provide a vehicle in that segment."

Automakers and regulators are debating a proposal initiated by President Obama last October calling for corporate average fuel economy of 47 mpg to 62 mpg by the 2025 model year.

The latest proposal would start with the 2017 model year, with final CAFE targets to be determined. New federal fuel economy and emissions rules took effect Jan. 1 that require automakers to achieve a CAFE of 35.5 mpg by the 2016 model year.

Handler did not expect GM to drop its full-sized SUVs.

The large SUV "is important for the person who wants to tow, especially in Texas where they want it big. I can't see them abandoning that market," she said.

But she said GM "will need to look at powertrain options so they don't detract from overall fuel economy."

The 2011 Tahoe 1500 and Suburban 1500 achieve 15 mpg city/21 highway for a combined average of 17 mpg. GM also offers a gasoline-electric hybrid powertrain on some large SUVs to improve fuel economy.

Last year, Chevrolet sold 75,675 Tahoes and 45,152 Suburbans. During the first four months of 2011, Tahoe sales are up 11 percent and Suburban sales are down 13 percent.

As recently as 2006, however, GM sold 161,491 Tahoes and 77,211 Suburbans.

GM to raise U.S. vehicle prices 0.4% as raw-material costs rise

Here we go again, in a time that dealers are just starting to get back on there feet the manufacturer is going to reach into there pockets and the consumers and raise the prices. Lets see, sales are finally starting to come back so lets raise the price and slow the buying down... Do these Execs even think before acting????

DETROIT -- General Motors Co. plans to raise prices on most of its vehicles starting next month in response to escalating raw-materials costs.

Today, GM notified its 4,500 U.S. dealers that the increases will average $123, or 0.4 percent, starting May 2.

"The increase is a response to the continued rise in materials costs, which has been driven by an increase in commodity prices," GM spokesman Tom Henderson said.

The price increases will be widespread across Chevrolet's portfolio, according to the notice sent to Chevy dealers today. The memo said prices are slated to rise on the Camaro and Corvette sports cars, the Malibu and Impala sedans, the Avalanche truck, the Traverse crossover and the light-duty Silverado and Colorado pickups.

The memo did not mention the Equinox crossover or the Cruze compact, two of Chevy's hottest-selling vehicles.

GM's move echoes a boost by rival Ford Motor Co. On April 1, Ford lifted its prices on 2011 models an average of $117, or 0.4 percent.

Toyota Motor Sales U.S.A. Inc., coping with a rising yen and an earthquake-shattered supply chain, is also raising prices an average 1.7 percent on many 2011 Toyota, Scion and Lexus models, starting next month.

Henderson cited rising oil prices as a factor but declined to say which materials are raising GM's costs the most. He also declined to say which vehicles would see price increases, citing competitive reasons.

As of the end of March, GM had a U.S. inventory of 574,000 vehicles, or about a 75-day supply. Henderson said the price increase was unrelated to parts shortages from Japan, which have crimped production at Japanese automakers and some Detroit 3 operations.

GM's OnStar said to consider free services, targeting Ford

DETROIT (Bloomberg) -- General Motors Co.'s OnStar in-car communications unit may offer some free services next year to rival Ford Motor Co.'s Sync music and information system, two people familiar with the plans said.

OnStar, a subscription service that provides accident alerts, directions and vehicle diagnostics, is scheduled to introduce an upgraded system this month that links vehicles to the social media site Facebook and translates voice messages to text, said the people, who asked not to be identified because the details aren't public.

In-car technology features attract tech-savvy consumers and allow carmakers to charge more for smaller, cheaper models, said Brandy Schaffels, an analyst at TrueCar.com. GM, the largest U.S. automaker, is adding features to keep pace with systems including Ford's Sync.

“When Ford came out with Sync, they met OnStar's services and upped the ante,” Schaffels, content manager at the California-based researcher, said in an interview. “Technological features are where GM and Ford are going to found their reputation with the next generation.”

OnStar may begin offering entertainment and information services that link to a user's smartphone without a subscription or fee, said one of the people. OnStar is now offered free in many models for the first year and then for $199 to $299 a year, depending on the features.

Jocelyn Allen, a spokeswoman for OnStar, declined to comment.

Voice-to-text

The voice-to-text system will be studied with a test audience while the company decides whether to offer it to all customers, the person said. The new version of OnStar will have enhanced services for emergency response, which alerts an OnStar operator when there is a vehicle crash, the person said.

OnStar will unveil a new advertising theme with the tagline “Live On,” while individual services will have their own themes, such as “Always On” to promote accident alerts, the people said.

The unit also is studying ways to use OnStar outside of the car, where immediate contact with an operator or access to other services such as safety or security might be useful, said the people, who declined to give specifics.

OnStar, available on more than 40 vehicles from GM's 2011 model year, has about 5.7 million subscribers, according to a GM regulatory filing. OnStar and Google Inc. said in June they would partner to offer eNav, a turn-by-turn navigation feature that allows drivers to send Google Maps destinations to their vehicle.

Ford Sync

Ford has been selling Sync, based on Microsoft Corp.'s in- car, voice-activated technology, since the 2008 model year, Alan Hall, a Ford spokesman, said in a telephone interview. The company added features such as touch-command controls and voice-activated climate control this year.

The technology, available as a $395 option on some models, helps make cars more profitable and is included standard on higher-end vehicles.

Ford said in January it plans to bring social networking, Web browsing and thumb controls similar to those on Apple Inc.'s iPod into 80 percent of its models by 2015.

GM to recall 1.5 million vehicles for fire risk

General Motors Co. said it is recalling 1.5 million vehicles with heated washer-fluid systems following engine fires that occurred even after a 2008 fix on many of the same cars for similar problems.

The recalls, to begin by June 14, will affect 18 models of 2006-2009 Buicks, Cadillacs, Chevrolets, GMCs, Hummers and Saturns, the National Highway Traffic Safety Administration said on its Web site today.

In August 2008, GM recalled about 858,000 cars and trucks following reports of fires resulting from shorts in the system that heats windshield-washer fluid. Dealers installed a wire harness that contained a fuse.

However, the module's internal thermal-protection device, or solder cup, “did not function as designed,” GM said in a June 4 letter to NHTSA that was posted today.

No injuries

GM said it has learned of five fires, including several that occurred while the vehicle was unattended. The company is not aware of any injuries or crashes.

“While our analysis shows the number of incidents is very small compared with the number of vehicles on the road, we want our customers to have complete peace of mind,” said Jeff Boyer, GM's executive director of safety.

The models of cars, trucks and crossovers included in the recall are the 2006-09 Buick Lucerne, Cadillac DTS and Hummer H2; the 2008-09 Buick Enclave and Cadillac CTS; and the 2009 Chevrolet Traverse.

Also included are the 2007-09 Cadillac Escalade, Escalade ESV and EXT; Chevrolet Avalanche, Silverado, Suburban, and Tahoe; GMC Acadia, Sierra, Yukon and Yukon XL; and Saturn Outlook.

While 1.4 million of the vehicles to be recalled are in the United States, there are others in Canada, Mexico and other countries, GM said in a statement.

Once the heated-washer fluid system is removed, the vehicles will no longer have the winter convenience of warm fluid to clean the frozen windshield, GM spokesman Greg Martin said.

GM said it plans to pay $100 to vehicle owners as compensation for permanently disabling and removing the heated washer fluid system. If all 1.5 million vehicles recalled are brought in, GM would pay out roughly $150 million, plus the cost of the actual fixes. GM, in court documents, projected the cost of the first recall was between $20 million and $25 million.

The heat is off

The original units, called HotShot, were manufactured by a suburban Detroit supplier called Microheat Inc.

Microheat's technology gained praise. In 2006, the company was a finalist for an Automotive News PACE Award given annually for supplier product and process innovation. PACE stands for Premier Automotive Suppliers' Contribution to Excellence.

But after GM's problems with HotShot began to emerge in 2008, Microheat ceased production of the units and filed for Chapter 11 bankruptcy protection. Microheat's Web site is no longer active.