GM seeks $16 billion; dire future looms for Saturn, Saab

Today was the due date for GM and Chrysler to turn in their homework -- a plan defining each automaker's long-term viability. And in defining the way forward, General Motors has put the hangman's noose around Saab and Saturn.

And that's just the start.

Just how safe is your pickup truck?

Bigger is better, when it comes to crashes. A basic tenet of physics that for years has sold big, burly pickups as the "safer" alternative to mid-size sedans. But, as the Insurance Institute for Highway Safety discovered, many of today's full-size pickups flunk the side impact crash test, a feat those wimpy sedans manage with ease.

So just how safe is yours?

Report: GM-Chrysler merger likely to decimate Chrysler lineup, trigger more layoffs

The fallout from a merger between General Motors and Chrysler LLC will lead to the closure of many as half of Chrysler's factories and the elimination of nearly all Chrysler models, according to a report released by consulting firm Grant Thornton LLP.

The report comes a day after General Motors canceled a $2 billion program to replace its trio of aging full-size SUVs and Chrysler culled its two full-size hybrid SUVs after only three months of production.

Merger and more layoffs seem inevitable
Despite the gloomy forecast, a GM / Chrysler merger seems highly likely at this point. Reuters reports that GM and Chrysler have resolved the major issues in a merger agreement and that the final form of a deal will depend on financing and federal support.

The New York Times reports that the Department of Energy was working to release $5 billion in government-backed low-interest loans to GM so it could complete a deal with Cerberus Capital Management, the majority shareholder of Chrysler LLC. The $5 billion in loans would come directly from a $25 billion pool of funds approved last month by Congress in an effort help Detroit retool as a maker of more fuel-efficient cars.

And while a merger may save the two embattled automakers, it most certainly will not save all their employees.

Speaking with Automotive News, Kimberly Rodriguez, principal of Grant Thornton's automotive practice said that a deal also could result in a loss of 100,000 to 200,000 jobs at the two automakers, their suppliers and other industry shareholders.

According to the report, the majority of job cuts would come as most of Chrysler model lineup is phased out. Chrysler's sedans have failed to outsell their domestic competitors and both the Dodge and Jeep division are heavily invested in SUVs and light trucks.

Massive consolidation of models, factories
Currently, Chrysler operates 14 factories, with two of them scheduled to close at year's end. During the summer, Chrysler has offered its Viper model lineup for sale, along with the Detroit plant where they are made.

In the report, Grant Thornton says that four more factories could close in the aftermath of a merger with GM. Those on the hit list produce the Chrysler Sebring and the Dodge Avenger in Michigan, the Jeep Liberty and Dodge Nitro in Toledo, Ohio, the Dodge Ram in St.Louis, Mo. and Dodge's heavy-duty truck plant in Saltillo, Mexico.

As production of these models wound down, a second wave of layoffs would then hit the third-party suppliers that provide transmissions, windows, dashboard assemblies — all of the primary components unique to each Chrysler, Dodge and Jeep model.

All told, the lost work to these suppliers would put hundreds of companies at risk. Up to 50,000 additional non-Chrysler jobs could be lost if Chrysler were to close the plants Grant Thornton expects.

Timing is critical; contraction is inevitable
If a GM-Chrysler merger is completed, it may take years to phase out all of the models listed in the Grant Thornton report. Some platforms may be eliminated through attrition; left in production until they cease to turn a profit. Some plants could be closed as early as the holiday shutdown and others could take years to close, said Rodriguez.

It is, in your humble author's opinion, a "damned if you do, if you don't" scenario.

Neither GM or Chrysler can survive alone in this market. While Chrysler has more cash on its books, they are in the worst position to capitalize on high gas prices. Worse yet, they lack the resources to improve their CAFE rating without aid. And while GM has a more fuel-efficient lineup, they are burning through their cash on hand at an alarming rate.

If either fails, far more jobs could be lost than those through the merger of these two former titans.

For more punditry on this unholy mess:
NYT: Views on a GM-Chrysler merger

[AN]

2010 Camaro orders heavily favor V8 SS, production delays possible

Since the books opened two weeks ago, Chevrolet has received 6,000 orders for the forthcoming 2010 Camaro.

In a time when consumer confidence is at an all-time low and wallets are clamped shut from coast-to-coast, 6000 sales in 14 days is a decent response for an all-new model.

But depending on who you listen to, filling all those orders may be a bit difficult.

When the time came for GM to decide how many V6 and V8 Camaros would be built, crude oil prices were pushing $130 per barrel with no sign of retreating. Expecting an early rush to the more fuel-efficient V6 models, GM settled on a 50-50 split.

In recent months, oil prices have done what once seemed unthinkable, plummeting to nearly$70 per barrel. And as gas prices have slowly fallen, a flood of orders have come in for the V8-equipped 2LT and 2SS trims. With 84 percent of orders-to-date requesting a V8 Camaro SS, demand may outstrip supply for the first year of Camaro production.

What we don't yet know is how quickly GM can clear the potential backlog.

In 2006, when the 2010 Camaro was announced, GM said that 80,000 units would be built in the first year of production. But as time has passed, that number has slipped. Unconfirmed reports now suggest that as few as 20,000 units will be built. If demand remains high for the V8 models, it may take weeks for GM to meet the demand.

Since production efficiency is the crux of the issue, it's worth pointing out that V8 Camaros will use different engines depending on the chosen transmission. Stick-shift models will use the 422-hp 6.2-liter LS3 V8, while automatic-equipped models will use the 6.2-liter 400-hp L99 V8 with Active Fuel Management.

This is still a developing story, so this post will be updated as more information becomes available. One thing is for sure; if you're interested in a 300-hp V6 Camaro LS or LT, get to your local Chevy dealer. There will plenty of room on the production line.

[GM, Camaro5.com]

Amidst dealer protests, GMAC seeks quiet retreat from lending business

In a move that has angered dealers and strained relations with General Motors, GMAC Financial Services has begun its retreat from the business of financing automobiles.

The first step came on Monday, when GMAC announced it would only offer financing to customers with FICO credit scores of 700 or higher.

Cerberus Capital Management, who owns a controlling 51 percent stake in GMAC, has tightened lending terms as the global credit market has ground to a halt. General Motors owns 49 percent of GMAC. Throughout history, GMAC has been the financier of most General Motors' retail sales.

California dealer group irate over new GMAC policies
The unilateral move to distance GMAC from risky auto loans has strained dealer relations so sharply that the California New Car Dealers Association put their objections in writing to GMAC Financial Services CEO Alvaro de Molina.

On its website, CNCDA says it represents over 1,350 franchised new car and truck dealers. The Sacramento Bee reports that among them, CNCDA represents 400 GM dealerships, located throughout California.

In their letter to GMAC, CNCDA President Peter Welch wrote that "Unless immediately stopped, GMAC's actions will directly lead to the insolvency of a number of our GM dealer members and will significantly erode GM's California market share." Welch said that 40 percent of California vehicle buyers will be cut off from GMAC financing under the new lending restrictions.

Compounding the problem, GMAC is now giving dealers less time to pay off their inventories.

Dealers often take out revolving lines of credit to replenish their lots with new vehicles. Depending on the terms of the credit line, dealers usually have from 90 to 120 days to pay the invoice price for the vehicles they order. But as new car sales have tanked this fall, inventories have languished with hardly any buyers in sight.

For dealers who finance their operations through GMAC, they now have fewer customers to sell to, since only those with above-average credit will qualify for an in-house loan from GMAC.

Financing that Fits... from someone else
And while dealers are being squeezed, General Motors has launched a new marketing campaign to reassure buyers that financing is available -- from someone else.

Called "Financing that Fits", the campaign will promotes the ease with which buyers will find financing at their local GM dealer, as well as large cash incentives on remaining 2008 models.

Speaking with Automotive News, Jim Campbell, GM's director of marketing and incentives said the ad campaign is aimed at potential buyers who are put off by news that financing isn't easy to come by. To aid the process of securing a loan, GM dealers will have access to Route One, a new web-based system that connects dealerships with a network of outside lenders. The new ad campaigns won't mention Route One specifically.

And as the ads hit the airwaves, GMAC is desperately seeking ways to cut its exposure to high-risk loans. So much so that minority stakeholder GM will quietly off incentives to dealers to arrange loans with outside lenders.

Automotive News reports that the program will pay up to $250 in incentives for every non-GMAC loan. Salespersons will get $100, sales managers will receive another $100 and dealers can designate an employee of choice to receive another $50. The length of the incentive program isn't clear.

According to the memo, all 2008 and 2009 Chevrolet, Pontiac, Buick, GMC, Hummer, Cadillac and Saturn vehicles will qualify.

[AN:1, 2, 3, SacBee.com, Edmunds.com]

2010 Chevrolet Camaro priced to sell from $22,995

After touring the show circuit in concept form and a run a starring role in the 2007 summer blockbuster Transformers, GM has announced pricing for the 2010 Chevrolet Camaro.

The V6-powered LS Camaro will sticker for $22,995, while the V8-powered SS will retail for $30,995. Both prices include the $750 destination charge.

The V6 engined Camaro LS comes straight from the Cadillac CTS 3.6 DI. Featuring dual overhead cams with variable valve timing and direct fuel injection, the 3.6-liter motor produces 300 horsepower and 273 pound-feet of torque. A six-speed manual transmission is standard equipment; a six-speed automatic is optional.

Camaro SS buyers who chose a six-speed manual transmission will have 422 horsepower and 408 pound-feet of torque, courtesy of the 6.2-liter overhead-valve LS3 V-8. Those who opt for the six-speed automatic SS receive the L99 overhead-valve V8, rated at 400 horsepower and 395 pound-feet of torque.

The L99 V8 is based on the LS3, but it also includes GM’s Active Fuel Management system, which can shut down up to four cylinders at highway speed to save fuel - an activity that seems at odds with the Camaro SS raison d'être.

In early testing, the LS Camaro delivers 27 mpg on the highway, the SS automatic returns about 23 mpg.

Both models feature a fully-independent rear suspension, four wheel antilock disc brakes (with a Brembo brake upgrade optional on the SS). StabiliTrak traction control and 18 inch wheels come standard, with a 19 and 20-inch wheel upgrade available on the SS.

Six air bags come standard on every Camaro, including head curtain side-impact air bags and front seat-mounted thorax side air bags. Other options include bluetooth hands-free cellphone support, remote start, USB-audio connectivity, OnStar and XM Satellite Radio.

Camaro LS models can also be ordered with the RS appearance package, which includes HID headlamps, a rear lip spoiler, chrome-trimmed taillamps and 20-inch wheels.

Customers can visit their local Chevrolet dealer and place an order starting this evening.
Production will begin next February at GM's Oshawa, Ontario plant and the first dealer orders will be filled in early March.

[GM]

Resurgence in Flint: Volt, Cruze engines to be built in Michigan

General Motors CEO Rick Wagoner announced today that the automaker will build engines for the Chevrolet Volt and Chevrolet Cruze in Flint, Michigan at a entirely new plant. Construction of the new factory will commence immediately.

The plant will begin producing the company's new 1.4-liter dual overhead cam Inline-four in 2010. The $370 million investment will include a 552,000 square foot facility, machinery and tooling to build the new engines.

The plant will build two 1.4-liter inline-fours: a 140-horsepower turbocharged motor to be used in the 2011 Chevrolet Cruze, and a naturally-aspirated version to be used with the 2010 Chevrolet Volt extended-range electric vehicle.

Both engines will feature variable valve timing for both the intake and exhaust cams. Both engines will also use a molded resin intake manifold to save weight.

Final horsepower figures have not been released for the naturally aspirated motor.

The new engines are part of a global engine family dating back to 1997, debuting as a 1.6-liter inline-four for the Opel & Vauxhall Corsa.

Speaking with Automotive News, Tom Stephens, GM Powertrain Group vice president, said production would start at 800 engines per day. Stevens didn't say how production would be split between the two motors.

Today's news comes as a watershed moment for Flint as well. In 1984, General Motors CEO Roger Smith closed the automaker's largest plant in Flint, a town that once was a symbol of GM's manufacturing might.

The plant closure eliminated 300,000 jobs and sent the town of Flint — which grew up around the plant — into severe decline, as later documented in the 1989 film "Roger and Me."

Speaking of the company's return to its roots in Flint, Wagoner said that "GM, the UAW and the city of Flint have had a long-standing relationship. We are confident that Flint is exactly the right place to build our all-new powertrain plant."

[AN, GM]

2011 Chevy Cruze: 45 mpg, but with a three year wait?

In the mass-market MPG race, Chevy's Cruze is the one to watch and wait for.

While the Chevrolet Volt has been stealing headlines (mine included) with its environmentalist cache and its electron-wily ways, the replacement for the Cobalt is shaping up to be the fuel miser for the masses.

Yesterday evening, the House of Representatives passed legislation that would qualify the Volt for a $7500 tax rebate. Toyota is not at all pleased with being left out in the cold; they've redoubled their lobbying efforts to get the bill amended before a vote in the Senate.

While the exact size of the rebate remains unknown, the current speculation pins the Volt's sales price at $35,000 or so, a large chunk of change for the average family. Hence why the 2011 Cruze — Chevrolet's successor to the maligned Cobalt — will go on to be GM's mass-market fuel sipper and the company's likely savior.

But not before a whirlwind tour in Europe.

When sales begin next March, the Cruze will be offered with three engine choices: a naturally aspirated 1.6 liter inline four good for 112-horsepower, a 140-horsepower, 1.8-liter turbocharged four or a 2.0-liter turbodiesel four producing 150 horsepower and 320 Nm of torque. Five speed manuals will come standard on all Cruze models. The Cruze will also be the first compact car to offer GM's new six-speed automatic transmission as an option.

While official EPA figures aren't available yet, the 1.6 liter four is projected to return about 45 miles per US gallon of gasoline. Judging by the contemporary Opel diesel lineup, the 2.0 liter diesel Cruze will likely get up to 50 mpg per US gallon.

These are impressive figures, considering that the current Cobalt eeks out 34 miles per gallon and only when tarted up in XFE trim with a miserly ECU tune and low-rolling resistance tires.

But despite the new car's technological bona-fides, the Cruze faces stiff competition simply overcoming the precedent set by the mediocre Cobalt sedan.

"Our goal in designing Cruze was to be bold, not evolutionary," said Taewan Kim, chief designer on the Cruze. "We wanted to take a big step forward, making a strong design statement for Chevrolet products around the world."

Kim clearly broke with the Cobalt and Cavalier mold, giving the Cruze an arching roof-line and steeply raked windshield that together seem more Teutonic than its bulbous predecessors. At the front, the Cruze employs one of the better uses of Chevrolet's global dual-panel grille layout — a trend your author still despises. Large headlamp housings frame the signature grille, wrapping around the front corners giving the Cruze an aggressive countenance that again seems more Germanic than Yankee.

Then why the long wait?
After decades of floundering in the compact car market, it seems like General Motors is finally beginning to understand how to use it's engineering muscle effectively. But the next step is to get the product planners on board. The Saturn Astra is the first US compact car to build on GM's strong European offerings; as gas prices rose, the Astra became a viable competitor. The Cruze seem set to solidify those gains.

Which begs the question why American buyers must wait until 2011. When viewed with the same cynicism as the Cruze's predecessors, the pre-sale braggadocio is merely a shot across the bow of Chevrolet's Japanese and Korean competitors, giving them nearly three years advance notice to counter the Cruze's strengths.

Mr. Wagoner, if you're reading this... stop talking and start selling.
After all, the purpose of building a competitive car is to sell it, rather than gaze at it longingly from afar.

[GM]

2011 Chevrolet Volt debuts on General Motors' centennial

A day after a tidal wave of insolvency inundated Wall Street creditors and set the Dow Jones tumbling, General Motors celebrated its centennial.

And in the midst of such turbulent economic tides, there was hardly a better way to celebrate than with the unveiling of the production ready 2010 Chevrolet Volt.

“It is a great way to open our second century,” said Rick Wagoner, GM Chairman and CEO. “The Volt is symbolic of GM’s strong commitment to the future … just the kind of technology innovation that our industry needs to respond to today’s and tomorrow’s energy and environmental challenges.”

Innovative design throughout
At first glance, it's clear that a healthy amount of time was spent honing the Volt's aerodynamics. On the whole, the production appears retains much of the concept's design essence while at the same time making concessions to aerodynamic and cost efficiency.

The Volt's rounded and flush front fascia, tapered corners and grille are the most readily apparent changes, all designed to minimize turbulence and the aerodynamic drag that results. Out back, the rear fender, spoiler and steeply raked rear window combine to form a faceted, sleek composition that allows air to flow off and away quickly.

Inside, the Volt offers a broad, airy cockpit for four, packed with leading-edge technology. Prominently placed in the center console is the Volt's standard touch-sensitive infotainment screen. The screen is used to display information about the battery's state of charge, climate control and audio systems.

Standard audio will include a six-speaker MP3 enabled CD player with AM/FM radio, as well as Bluetooth networking for hands-free phone integration and music streaming from a Bluetooth-enabled personal music player. Navigation will be offered as an option; the system will also include an on-board hard drive for storing both the navigation system's maps and music recorded from CDs.

In lieu of conventional analog gauges, the Volt uses a color LCD screen which the driver can reconfigure to his or her liking. More details on the instrumentation will come to light as release date nears.

All of this design and technological wizardry is an accessory to the key innovation of the Volt — its electric-gasoline drivetrain.

Under the hood, electrons abound... gasoline optional
Unlike a conventional gasoline-electric hybrid, the Volt's electric motor drives the car's wheels all the time at all speeds. For up to 40 miles on a full charge, the 16 kilowatt-hour lithium-ion battery provides all the vehicle's power, which means no gasoline used and no tailpipe emissions.

When the battery is depleted, a gasoline-powered engine turns an on-board generator, providing electricity to power the Volt's electric drive unit and simultaneously sustaining the charge of the battery.

Unlike previous electric vehicles, the Volt will never leave the driver stranded by a flat battery. Further enhancing the car's efficient drivetrain, the Volt can be plugged into either a standard household 120-volt or 240-volt for direct charging of the onboard battery off of mains power.

At 240 volts, the Volt will fully recharge in three hours; eight hours are required with a 120v outlet. Charge times are reduced if the battery has not been fully depleted. At a cost of about 80 cents per day (10 cents per kilowatt-hour) for a full charge that will deliver up to 40 miles of electric driving, GM estimates that the Volt will be less expensive to recharge than purchasing a cup of your favorite coffee.

Charging the Volt about once daily will consume less electric energy annually than the average home's refrigerator. For a driver that stays within the Volt's 40 mile electric-only range and recharges off of mains power, about 500 gallons of fuel will be saved. At an average price of $3.60 per gallon, that’s a yearly savings of $1,800. Commuters with a 60 mile round trip commute could save up to 550 gallons, or $1,980 per year.

In addition to offering substantial fuel savings, the Volt's electric drive unit offers spirited driving performance in a remarkably quiet interior. The Volt delivers the equivalent of 150 horsepower and 273 pound-feet of instant torque to the wheels. Top speed is electronically limited to 100 miles per hour. The lack of engine noise, combined with special sound-deadening materials make the Chevrolet Volt a particularly quiet vehicle to drive.

An American Revolution (we hope)
The last remaining step in the Volt's production process is to settle on a location for the plant.

Wagoner has expressed interest in keeping Volt production stateside and has begun lobbying Congress for tax incentives both on production and retail sales of the Volt.

Assuming all goes well, the Volt will begin rolling off the line at GM's Detroit-Hamtramck manufacturing facility in late 2010. Pricing has not yet been announced, but we will continue to follow the Volt as further details emerge.

[GM]

2009 Chevrolet Equinox to receive all-new drivetrains, Pontiac Torrent SUV culled

In the wake of the restructuring plan announced last week, we are learning more about the sweeping changes coming to all corners of the GM empire. With fuel economy triage being the top priority, the General is tending to the patients in worst shape first.

For 2009, the Chevrolet Equinox SUV will ditch its 3.4 liter pushrod V6 for an all-new 2.3 liter turbo inline 4 with direct injection. The motor is a stroked version of the 2.0 liter turbo four found in the Chevrolet Cobalt SS.

Official horsepower figures haven't been released yet. Given that the current V6 is rated at 185 horsepower, we expect output in the mid 200s. Fuel economy figures aren't in either, yet a 15 percent improvement from the current model's mileage (16 city / 24 highway) isn't out of the question.

In addition to the base four cylinder, a Sport model will join the lineup in mid-2009, powered by a 263 horsepower DOHC 3.6 liter V6 taken from the Saturn Aura.

Both trims will be front wheel drive using the same six-speed automatic transmission with manual shift control.

The Pontiac Torrent — a badge-engineered clone of the current Equinox model — will cease production at the end of 2008. The new Equinox will be re-badged by the GMC division and sold as the GMC Terrain, starting mid-2009.

[Source: GM]

Something wicked this way comes: Nelson Racing builds 1600+hp Mosler MT900

With 550 horsepower, a stock Mosler MT900S is already a titanically fast machine. A street-legal descendant of the MT900 racer, the svelte LS7 V-8 powered missile demolishes the quarter mile in 12 seconds flat on the way to a top speed well over 180 miles per hour.

Yet Mike Vietro, owner of the only Mosler dealer in the US, saw room for improvement.

Seeking help from Nelson Racing Engines of Chatsworth, California, Vietro delivered his scarlet and white "Red Devil" MT900S, seeking a power plant befitting the name.

This week, proof that NRE delivers the goods came in spades.
1,635 horsepower and 1,481 pound feet of torque at 5600 rpm, to be specific.

During the engine dyno test, the twin-turbo LS7's output continued to soar by about 70 hp per 100 rpm (see the dyno sheet below). Yet with oil pressure and temperature holding steady, the test was shut down at Vietro's request.

“Fulfilling this unique request was not an easy task. We spent months perfecting this engine,” said Tom Nelson, owner of Nelson Racing Engines. “Ultimately all our hard work paid off and once completed this Mosler will be a one of a kind vehicle, unmatched in power and performance.”

Final tuning and installation are nearly complete. The final tunes includes a 91 octane tune good for 1,150 horsepower at 13 pounds of boost pressure. Dump in the C16, however, and up to 1800 horsepower will be available at the touch of a button.

Stay tuned; as the road test figures come in, expect records to fall.
Vietro's Mosler certainly has the output to decimate all challengers.


[Source: Nelson Racing Engines]

GM hybrid fleet rolls out in oil-rich Dubai

In a deal with General Motors, the Dubai Roads & Transport Authority has begun a year-long field test of five Chevrolet Malibu and five Chevrolet Tahoe hybrids.

Despite being flush with oil reserves, the agency has expressed interest in cutting their operating costs and pursuing more ecologically conscious means of transport. GM was the first manufacturer to respond to a global invitation issued by Sheikh Mohammed bin Rashid Al Maktoum, then ruler of Dubai.

Maktoum currently serves as vice president and prime minister of the United Arab Emirates.

The primary goal of the test fleet is to see how the hybrid drivetrains — and the batteries in particular — respond to the extreme climate in the Middle East. Information gathered from the test fleet will help GM engineers determine a "real-time expectation for the batteries" lifespan in such extreme heat.

Emissions and fuel economy will also be monitored.

The Dubai RTA currently operates 6,000 vehicles and has announced that it will replace its entire fleet with more fuel-efficient models, pending the outcome of this and other trial programs.

[Link]

Road Test: Chevrolet Fuel Cell Equinox

In an age of soaring gas prices, economy and ecology have ousted horsepower and torque as the buzzwords in today's automotive market. From ethanol-intensive blends of gasoline to soy-based plastics used to furnish interiors, environmentalism has become both a means to combat rising material costs and a powerful pitch line to sell cars.

In this market, Honda and Toyota have long been the front runners, raking in a tidy profit with the fuel sipping Civc Hybrid and Toyota Prius, both of which squeeze 40 or more miles out of a gallon of gas.

But while the Japanese spent the last decade focused on maximizing fuel efficiency through investment in gasoline-electric hybrids, General Motors doubled down on the SUV market. GM made millions in an era of cheap gas by selling tarted-up trucks which on average weighed nearly two tons and returned single-digit gas mileage.

With the SUV market now nearly obliterated by oil trading at $130 per barrel, General Motors has regrouped, aggressively publicizing their own fuel efficient and ecologically conscious products.

The figurehead in this new campaign is the fuel cell powered Chevrolet Equinox.

Dave Barthmuss, GM regional group manager of environment & energy communications, sees the hydrogen powered trucklet as an example of how to move away from oil altogether. "As a nation we are 98 percent dependent on oil as an energy source. It is a finite resource. Hydrogen fuel cell technology is an option that we feel is part of the future."

Road Test:
A small SUV comparable in size to the Honda CRV, the fuel cell Equinox drops the current model's six-cylinder engine in favor of an electric motor and an automatic transmission that continually selects the best gear ratio for either acceleration or economy.

But rather than use batteries to store electricity, the fuel cell Equinox uses pressurized hydrogen and atmospheric oxygen in the on-board fuel cell to create power for the motor as it is needed. To extend the vehicles range, a small battery pack is also carried on board to store energy captured from the vehicle's regenerative braking system.

Electric motors produce maximum torque at idle; the first sensation when driving the diminutive SUV is one of instant power and eager acceleration. During my time cutting a swath through typical Valley traffic, the Equinox responded to a squeeze of the "gas" pedal with zeal, making merging and overtaking effortless.

At first, the regenerative braking was sensitive, requiring a deft touch to brake smoothly. Regenerative braking works by using the electric motor as a generator, creating electrical currents that charge the batteries and slow the car by creating resistance within the motor itself. And as the motor slows, so does the rest of the car.

After a few blocks of stop-and-go driving the learning curve leveled off. It was actually fun to anticipate the next red light and try to save the most energy, watching the power meter (which replaced the gas-powered model's tachometer) spin backwards as the regenerative braking kicked in. In a panic stop triggered by an trailer-towing twit, the regular hydraulic brakes stopped the SUV with alacrity.

In nearly every respect, the fuel cell Equinox proved to be a very refined vehicle that is as practical as its gasoline-powered counterpart. At highway speed, the only sound was a faint whine from the electric motor and the wind rustling past the windows. The rear hatch wasn't cluttered by batteries or hydrogen tanks befitting a zeppelin. The rear seats still folded, just as on the regular model. You could very easily take this trucklet on the supermarket run or wherever else the urban SUV still roams.

Which is precisely the point GM is trying to prove.

Project Driveway
The Chevrolet division of General Motors will be offering 100 examples to selected members of the public as a part of Project Driveway, their first long term public road test of fuel cell technology.

Participants will be chosen based on their driving habits and their proximity to one of three hydrogen refueling stations operated by GM in Los Angeles County. Those selected to drive the Equinox will get to use it completely free of charge for three months at a time and report their experiences back to Chevrolet. Motorists in Washington D.C. and New York City will also participate in the program.

"Drivers will provide regular, candid feedback about their use of the vehicle in their daily lives, the vehicle's performance and their personal preferences," said Ed Peper, general manager of the Chevrolet division, in a public announcement introducing the program. "[Their feedback] is key in defining our product and introduction plans for fuel cell vehicles."

Yet before the program begins, driving range will be the critical issue. When fully fueled with nine pounds of hydrogen, the fuel cell Equinox can be driven about 150 miles. This is fine for the inter-city commute and in traditional gasoline mileage figures, this equals roughly 35 miles per gallon — a remarkable feat given the size of the vehicle.

The lack of hydrogen fueling stations remains the major roadblock toward delivering an otherwise road ready product.

Barthmuss recognizes this hurdle and sees "Project Driveway" as a way to stimulate investment in fueling stations. "Our goal is to have a fuel cell program ready by 2010 and we are confident that we can meet that goal. We don't see any engineering standpoint. The only roadblock is infrastructure."

Note: A version of this article was published in the Daily Sundial on June 30, 2008. Reprinted with permission. - DM.