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]

Auto News Wrapup: F-bombs, tax bills and buyouts

Cerberus in talks to buy out Daimler AG stake in Chrysler

A day after the company's bold assertion to enter the EV market in less than three years, Chrysler may soon be owned wholly by current majority shareholder Cerberus Capital Management.

This afternoon, officials from both companies confirmed the talks regarding the sale of the 19.9 percent stake Daimler currently holds in Chrysler LLC. A spokesman for Cerberus Capital Management also said that the current supplier agreements between Daimler and Chrysler would continue after a potential sale.

The private-equity firm Cerberus bought 80.1 percent of Chrysler from Daimler AG in August 2007 for $7.4 billion. Chrysler Holding encompasses Chrysler LLC, the automaker, and DaimlerChrysler Financial Services Americas LLC, known to the market as Chrysler Financial.

"It's still very early to tell why this is happening," Aaron Bragman, auto analyst at Global Insight, told Reuters. Bragman posited that the full purchase of Chrysler may be a prelude to selling the automaker whole to a third party.

House approves $25 billion in auto industry loans; Senate passes $7,500 tax credit for plug-in hybrids

As the mortgage bailout dog and pony show continues on Capitol Hill today, the House of Representatives voted 370 to 58 in favor of a $25 billion aid package for American automakers and suppliers. The bill sponsors the issuance of low-interest government-backed mortgages that would allow automakers to retool factories and expedite the production of more fuel-efficient vehicles.

The Senate is expected to vote on the budget bill by week's end; President Bush is likely to sign it. When signed, the new loan program will set a new precedent in government involvement within the auto industry, far exceeding the 1979 bill which provided loan guarantees to Chrysler Corporation.

Rep. John Dingell, D-Mich., chairman of the House Energy and Commerce Committee, said in a statement:

"Some critics will call this loan package a bailout. It is not. These loans amount to a little more than 1 percent of the real bailout -- the one that the Bush administration wants for Wall Street at a cost of $700 billion to taxpayers.

"The loans to the automakers will cost about $7 billion and will be repaid to the taxpayer at a profit," Dingell said. "The auto direct-loan package is a good deal for auto workers and a good deal for taxpayers."

Rep. Jerry Lewis, R-Calif., ranking member on the House Appropriations Committee, complained that the bill was put together by a handful of Democratic leaders and the vote was taken before it was properly reviewed in session.

Chevy Volt to qualify for maximum plug-in hybrid tax credit

Meanwhile in the Senate, General Motors is one step closer to their wish of a $7500 tax credit to help jump-start sales of the Chevrolet Volt. In a wide-ranging and intricate tax bill, a small provision creating a new tax credit for buyers of plug-in electric vehicles was passed today.

The credit would start at $2,500 and rise to as much as $7,500 for a light-duty vehicle, depending on battery capacity. As currently written, the Chevrolet Volt qualifies for the maximum tax credit. The measure would begin to phase out tax credits for plug-in electrics after 250,000 units have sold — a marked contrast to the 2005 tax bill that began to phase out after only 60,000 units.

The complex tax bill ricocheted through the various subcommittees for months, but when the votes was taken, the bill passed by 93-to-2. The House must still act on the bill, but with the upcoming recess for the election, a vote is expected by week's end. The White House dropped objections to some provisions unrelated to the plug-in hybrid tax credit.

As of a few days ago, Toyota officials complained that the 2011 plug-in hybrid Prius would be excluded from the tax credit. It's unclear how far the Senate moved to meet Toyota's objections, but it appears the issue has been resolved.

Dropping "F" Bombs: Ford family heir sells 1M shares of company stock

And in our last news item of the night: Bill Ford, chairman of Ford Motor Company and grandson of founder Henry Ford, dumped one million shares of common stock on Sept. 19 — in part to pay off debt incurred by exercising stock options in 2004 and 2005.

Ford sold the shares at an average weighted sale price of $5.05 on Thursday and continues to hold more than 5.3 million shares of common stock in the automaker, according to a filing on Friday with the U.S. Securities and Exchange Commission.

Ford bought over 1.4 million common shares in the company since March 2004 and another 1.5 million in March 2005 after exercising options granted over the years, according to SEC filings. Share prices fell in the immediate aftermath of Friday's sale before rebounding to close at $5.03 tonight.

[AN, Reuters]

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]