GM's troubled Chevy Volt. Image: Wonderdawg777/Flickr/CC BY

The National Highway Traffic Safety Administration has concluded its safety investigation into the Chevy Volt, giving the car a relatively clean bill of health. However, the Volt is still struggling to make it in the marketplace. Many Chevy dealers are refusing to take the plug-in hybrid cars off of GM’s hands.

Safety issues investigated

GM fell far short of its goal to sell 10,000 Volts in the U.S. in 2011. The automaker was only able to move 7,671 units last year. GM has cited the recent NHTSA investigation into alleged engine fires following side-impact collisions as the reason for the decreased demand.

The NHTSA concluded its investigation Monday. The agency released a statement saying that with GM’s recent fixes, the Volt is safe:

“The agency’s investigation has concluded that no discernible defect trend exists and that the vehicle modifications recently developed by General Motors reduce the potential for battery intrusion resulting from side impacts.”

Sales slow before probe

However, sales were slow on the model even before the safety issues emerged. Now Chevy dealers on both sides of the U.S. are balking at buying the cars.

In December, GM had 104 Volts earmarked for 14 dealerships in the New York market. According to Automotive News, only 31 of those cars were actually accepted by the dealers. Some might blame the area for its lack of infrastructure to support electric vehicles, but the same thing happened in California.

Brett Hedrick, a dealer in Clovis, Calif., moved 10 Volts last year. GM has allocated six Volts a month to the dealership, but Hedrick passed on all of the vehicles in December and January.

“We’ve never sold more than two in a month,” he told Automotive News.

[A friendly dealership: Dodge-Chrysler-Jeep Springfield]

GM abandons quota

GM said at the Detroit Auto Show last week that it would not be pursuing its previous goal of selling 60,000 Volts in 2012. Instead, the car maker will produce the hybrid electric vehicle as demand dictates.

Is U.S. ready for plug-in?

Jalopnik suggested Monday that the problem may simply be that the U.S. is not that keen on electric vehicles yet. Other research suggests the same. According to Bloomberg, a survey released in January from Pike Research concludes that the American public is showing a decreased interest in electric vehicles. Those expressing interest in EVs went down from 48 percent in 2009 to 40 percent in 2011, according to the survey.

Sources

Jalopnik
Chicago Tribune
Auto Week

Volkswagen challenges GM for world domination. Image: LivingOS/Flickr/CC BY-SA

Car Deal Expert reported Thursday that GM had once again overtaken Toyota as the world’s largest automaker. However, Volkswagen is crying foul, saying its numbers are not all in, and that it intends to steal the crown for itself.

GM top dog for nearly 80 years

GM held the top annual spot for vehicles sold for nearly 80 years, until it was unseated by Toyota in 2008. But Thursday GM announced that it had sold more than 9 million units in 2011 and become number one again. By Friday, however, Volkswagen was asking for a recount.

[Get a sweet deal at atlanta ga toyota .]

Volkswagen says ‘count again.’

According to the Wall Street Journal, Volkswagen says it will be adding another 200,000 units to its total when figures come in from the truck makers MAN SE and Scania AB in a few weeks. VW owns controlling interest in the companies.

VW also called into contention GM’s inclusion of sales figures from China’s SAIC Motor Corp. and Liuzhou Wuling Motors Co. because GM does not have controlling interest in those companies.

The yearly scuffle

Every year automakers flaunt sales figures and compete for the bragging rights to call itself number one. What to count and what not to count becomes an annual bone of contention.

‘Annoying’ and ‘meaningless’

Rebecca Lindland, a senior analyst at IHS Automotive Consulting, said the yearly battle to determine the largest automaker is:

“Very annoying, and it’s also meaningless. The important thing is whether they are making money.”

VW actively seeks crown

Volkswagen seems hell-bent on claiming the crown of late. Over the fall sales season, the German automaker has reiterated its intention to sell 10 million cars by 2018 and become the world’s largest car maker.

GM’s Jim McCain, possibly in response to VW’s well-publicized bid for world leadership, said:

“Our goal is to be the best, not necessarily the biggest. If we had announced plans on world domination, we probably would have been quibbling with the sales of our competitors, and that’s as far removed from focusing on the customers as you can get.”

Sources

Wall Street Journal
Motor Trend
Autoblog

The 2012 Chevrolet Sonic. Image: DrivingtheNortheast/Flickr/CC BY

General Motors Co. has announced that it will be recalling 4,873 of its 2012 Chevrolet Sonic cars in the U.S. and Canada. The cars may be missing front brake pads, according to the National Highway Traffic Safety Administration’s announcement on Friday.

A preventative measure

The company is being proactive in the recall. No injuries or accidents have been reported as a result of the issue. According to GM, its research concluded that 20 to 30 of the recalled cars were distributed without one of its inner or outer front brake pads. The missing pads could increase stopping distance and lead to an accident, GM said in a statement.

The company said that 4,296 of the cars are in the U.S. The remaining 577 are in Canada.

Problem detected during warranty service

The brake pad issue was first detected during a warranty service on a Sonic used as a rental car. The pads were part of components supplied by a South Korean-based subsidiary of Delphi Automotive. According to GM spokesman Alan Adler, the pads fell off the components before the cars were assembled and remained undetected at the bottom of shipping crates.

Owners notified mid-January

Sonic owners will be notified by dealer letters beginning Jan. 14. Technicians at GM dealerships will inspect the vehicles and replace the brake pads, calipers and rotors as needed at no charge to the customer.

A new GM model

The Sonic is a new member of the GM lineup. The sub-compact was a replacement for the Korean-built Chevy Aveo. Nearly half of its 10,000 U.S. sales happened in November. The Sonic is the only subcompact car built in the United States.

Two-tier pay system

The car is assembled at GM’s plant in Orion Township, Mich. The United Auto Workers agreed to allow GM to pay its workers according to the new two-tier pay scale. That second tier amounts to less than half the industry standard wages for new hires. The UAW agreed to the pay cut in order to keep the plant within the United States.

Sources

Autoweek
Boston.com
MSNBC 

In bankruptcy, Saab will be forced to sell off designs like this one, the Phoenix concept. (CC BY/Autoviva/Wikipedia)

Saab’s descent into bankruptcy may kill the brand name, but evidence suggests that its engineering and technology will live on. The Swedish automaker, whose name derives from its original founding company Swedish Aerospace AB, has some small car architecture waiting in the wings. According to the Detroit Free Press, the automaker that buys the rights to the Saab Phoenix will have a visually dynamic, futuristic small car with a “wow” factor that should drive sales.

The Saab griffin roars once more

Rather than resigning itself to the pages of myth, the Saab Phoenix could rise from the ashes of bankruptcy, should the right buyer step forward. Like the mythological griffin that adorns the Saab logo – a beast with an eagle’s head and a lion’s body – the automaker’s reputation may seem a bit out of sorts lately, what with less than satisfactory sales numbers. But industry experts believe that Saab’s Phoenix concept design will soar like an eagle and roar like a lion for the right buyer.

Getting aeromotional over the Saab Phoenix

Based upon the architecture of the Saab 9-3, the Phoenix introduces what Saab engineers have called “aeromotional” design. The Phoenix’s innovative, aerodynamic design principles create a line not far removed from that of Saab’s first vehicle, the Ursaab. Teardrop, liquid metal forms condense around a jet canopy glasshouse that wraps around the translucent ice-block design with dramatic winglet flourishes. The shape contributes to an ultra-low drag co-efficient of 0.25, enabling the Saab Phoenix to slice through the air.

Inside the butterfly doors, the 2+2 cabin is cleanly minimal in appearance, withholding the kind of visual gadget overload that can distract from the driving experience. The technology is present, however, thanks to Saab’s Iqon infotainment and communications system.

Help for a young automaker

The Detroit Free Press calls the Saab Phoenix design the kind of exciting small car concept that could help a growing automaker compete with the giants. Saab’s asset sale will reportedly include such intellectual property. Factory equipment may also be included in the deal, but industry insiders note that nothing of General Motors engineering marvels, from powertrains to vehicle architecture, will be included. GM took control of the Saab brand from Swedish Aerospace AB in 1990.

Sources

AutoGuide.com
Detroit Free Press
Saab Newsroom

The newly re-opened Spring Hill plant used to make Saturns. Image: cursedthing/Flickr/CC BY-ND

A General Motors production plant in Spring Hill, Tenn., is planning to begin hiring new workers early next year. The plant is gearing up to produce the Chevrolet Equinox. The catch? New workers can expect to make about half of the industry standard wage.

Saturn plant re-tooled

The plant opened officially with the pushing of a big red ceremonial button a few days after thanksgiving. The plant has been used in the past to assemble Saturns. The event is being hailed by many as a return of the auto industry to recession-ravaged central Tennessee.

Hundreds to be hired

General Motors is spending about $250 million on the effort. For the first phase of production, the automaker plans to hire about 700 workers. About 1,200 more will be added later for the 2015 model year production. According  to the Columbia Herald, Mike Herron, of the United Auto Workers Local 1853 said that the first wave of hiring should begin in the second quarter of 2012.

New hires get second tier pay

But there is a catch. In order to make the deal happen, the United Auto Workers union had to agree to new-hire plant employees stating at on $15.78 an hour. That is about half of the prevailing industry wage for staring employees.

In order to make ends meet, the automaker wants to adopt the two-tiered pay system that has become a standard in the airline industry. The system allows for some employees to be paid on a different scale than others, even though they may be doing the same work.

Compromise necessary, UAW says

Bob King, president of the UAW, expressed displeasure with the decision, which compromises many of the union’s core principles. But he says that there seemed to be no alternative. It was this, or the jobs would not exist at all. The new plant, according to King, gives the union a foothold in the region, and it can build support from there.

Depressed workers welcome opening

Others welcome the compromise. The plant will bring solid employment for hundreds in the region who desperately need it.

When the Saturn plant closed two years ago, hundreds of employees were displaced to plants in Flint, Mich. Many were forced into a double life, commuting between Michigan for the work week, and Tennessee to be with their families on the weekends. These workers are depending on the automaker to honor its promised “return rights” when the re-opened plant goes into production.

But those looking for new-hire production positions will have to be patient. While hiring has already begun for some management positions, applications are not yet being accepted for hourly production positions.

Sources

MSNBC
Kentucky.com
News Channel 5

GM's troubled Volt EV. Image: eschipul/Flickr/CC BY-SA

Last month, U.S. safety regulators announced possible risks with the plug-in battery packs powering GM’s Volt. The National Highway Traffic Safety Administration has pointed to problems that it says could possibly cause a fire days after a crash. GM has been quick to investigate possible fixes. Sources say the automaker has a possible package of fixes that could solve the problem.

 Cost $1,000 per car

Unnamed sources told Reuters that the suggested repairs would involve laminating the circuitry of the 400-pound Lithium-Ion battery pack, bolstering the cooling system against leaks, and strengthening the battery housing. The fix would cost about $1,000 per vehicle, about $9 million total. It could prevent a much more costly recall at a later time.

Safety rating remains unchanged

The Insurance Institute for Highway safety said Monday that it has no plans to strip GM of its five-star safety rating over the incident. Likewise, the NHTSA said GM would retain its impeccable safety rating in spite of the investigation.

These fixes still remain unconfirmed by GM. Spokesman Rob Peterson said:

“To the best of my knowledge, we’re not discussing exact solutions at this point.”

The Volt is a hybrid vehicle that also contains a 1.4 liter gas-powered engine as a backup after its 40-mile battery range is depleted.

Fires after crash tests

The NHTSA became alerted to the possible issue with the battery pack when a Volt burst into flames three weeks after a crash test in May. In November, another Volt battery pack began to spark and smoke. And a third Volt caught fire in November about a week after it was crash-tested.

GM has offered loaner cars to Volt owners while the safety investigation is been pending. Days later, the company made the unprecedented move of offering to buy back Volts from customers who were worried about the safety issues.

Meanwhile, the NHTSA is taking flack over its six-month delay in announcing the issue and the investigation. Congressman Jim Jordan of the regulatory subcommittee of the House Oversight panel said in a statement:

“This is a serious situation that our committee will look further into.”

Sources

Autoblog
Reuters
Automotive News

GM recently announced it had made its 100-millionth small-block V-8. Photo Credit: Tino Rossini/Wikimedia Commons/CC-BY

Various auto manufacturers become known for a particular motor and no one does the small-block V-8 quite like General Motors. The company has been making them for more than 50 years and number 100 million just rolled off the assembly line.

The engine that could

Various auto manufacturers come to be identified with a motor that powers many of the iconic cars offered by that company. Examples include Toyota’s four-cylinder R series, Mazda’s rotary engines and Porsche and Subaru’s boxer engines.

Get auto loans for the world’s most popular brands.

One of the most iconic engines has been the small-block V-8 by General Motors. The first small-block V-8, according to AutoWeek, debuted in 1955 from Chevrolet, and just about every General Motors brand has had something like it in a car ever since. Name an iconic muscle car by GM, and it had one. Any available full-size GM truck, van or performance car has the modern version in it today.

Number 100 million rolls off the line

It was announced by General Motors that it had produced its 100-millionth small block V-8, according to the Wall Street Journal. In order to commemorate the event, engine number 100 million was an LS9, the bespoke V-8 for the Corvette ZR1, GM’s fastest production car to date. The LS9 that goes into the ZR1 is a super-charged monster; the 6.2-liter motor produces 638 horsepower and can propel the ZR1, according to Chevrolet’s website, from 0 to 60 miles per hour in 3.4 seconds and has a top speed of 205 miles per hour.

Small block number 100 million, according to MotorTrend, was assembled in Wixam, Mich., at GM’s Performance Build Center. Unfortunately for enthusiasts who have the cash to afford the $111,525 price tag for a ZR1 and want the car powered by the 100-millionth small block V-8, it will not be put into a car. Instead, according to the Wall Street Journal, the engine is headed for General Motor’s historical collection.

Tradition will continue

The first small-block V-8 was the Chevrolet small-block V-8, which was the brainchild of Chevrolet engineer Ed Cole, according to AutoWeek. Cole transferred to Chevrolet from Cadillac and refined the design of the Cadillac Stovebolt motor, making it lighter and more powerful. That first Chevy small block was pedestrian by today’s standards. The 4.3-liter engine turned out 195 horsepower and was immediately offered, according to Wikipedia, in the Corvette and the Bel-Air.

Other GM divisions developed their own bespoke eight cylinder motors, but the small-block V-8 became the flagship engine for the General Motors auto empire. The next generation, according to MotorTrend, of GM V-8 will likely debut in the 2013 Corvette, which should arrive in late 2012.

Sources

AutoWeek

Wall Street Journal

MotorTrend

Chevrolet

Wikipedia

General Motors will give any Chevy Volt owner a loaner while the investigation of a battery fire is ongoing. Image from Wikimedia Commons.

General Motors has responded strongly to the Chevy Volt catching fire after crash testing and the subsequent investigation. GM is contacting Volt owners and giving them the option of a loaner vehicle if they are concerned about safety.

New crash tests create sparks

It was recently revealed that a Chevrolet Volt had caught fire weeks after being used in crash tests by the National Highway Traffic Safety Administration. The fire occurred in June, according to AutoWeek, spurring an NHTSA investigation into fire risks posed by the Volt after a crash.

It was determined, according to AutoBlog, that the fire was caused when a coolant line in the battery was ruptured in the crash test in May, leading to the battery overheating and catching fire. The NHTSA conducted further testing on battery packs, intentionally damaging the coolant lines and seeing if the fire can be replicated.

Tests were conducted, according to AutoWeek, on Nov. 16, 17 and 18. The battery pack tested on Nov. 17 temporarily increased in temperature. The battery pack used in the Nov. 18 test was damaged and rotated 180 degrees and began to smolder and emit sparks.

Loaner cars available for concerned owners

The second Volt battery fire is still being investigated, but General Motors is contacting all current Chevy Volt owners to update them on the investigation. GM, according to USA Today, will also loan them any GM vehicle they want for the duration of the NHTSA investigation if they don’t feel safe driving the Volt in the meantime.

According to Car and Driver, GM is also enacting a response protocol for any Volts that are involved in a crash. The Chevy Volt is equipped with OnStar technology, which will notify the manufacturer in the event of an accident. General Motors says it will get a technician to any Volt within 24 hours of a crash to deactivate the battery and stifle any chance of a fire occurring.

Improper battery treatment blamed

The original fire, according to Car and Driver, happened because the battery wasn’t drained of power after the crash. GM asserts that if the NHTSA had drained the batteries of power after the accident, the fire wouldn’t have occurred. If no electricity is present in a damaged battery, the battery becomes inert; an electrical charge is required to spark an electrical fire.

General Motors is currently issuing guidelines on how to de-power a battery after a crash to all of its dealers and for third party service providers. There have been no incidents of fire among the owners of the 5,400 Chevy Volts currently on the road, though several fires have occurred in garages where Volts were being charged. However, those incidents were due to faulty house wiring, not anything to do with the car.

The circumstances which led to the fire in June, according to AutoBlog, are also incredibly unlikely to occur in real-world conditions.

Sources

AutoWeek

AutoBlog

Car and Driver

USA Today

AutoBlog

GM sees the 2013 Chevy Malibu Eco as its path toward getting a green head start. (Photo Credit: CC BY/romulusnr/Wikipedia)

Critics of green and hybrid vehicles have noted that the technology is still too expensive to consumers for it to take off. General Motors would like to change that, reports Automotive News. The automaker has announced very competitive pricing on the 2013 Chevrolet Malibu Eco. The sticker price for the GM electric vehicle when it goes on sale in early 2012 will be $25,995.

2013 Chevy Malibu Eco engine specs

The 2.4-liter, four-cylinder, 182-horsepower engine of the 2013 Chevy Malibu Eco will combine with GM eAssist technology to boost fuel economy. The electric motor with lithium-ion battery and a stop-start system should increase fuel efficiency by 20 percent, according to the automaker. General Motors claims the Malibu Eco will achieve 28 mpg in the city and stretch out to 36 mpg for highway driving.

Price point set below hybrid competition

GM has been quick to point out that the 2013 Chevy Malibu Eco’s price point will be significantly lower than those of its full-hybrid competition for mid-sized sedans. The 2012 Ford Fusion Hybrid carries a sticker price of $29,495, the 2012 Toyota Camry Hybrid is $26,600, and the 2012 Hyundai Sonata Hybrid is $26,545. As with the Eco, prices include destination fee.

A new car loan can cover the cost of green technology.

While other versions of the 2013 Malibu have yet to be announced by GM, the 2012 model comes in three types of trim: LS, LT and LTZ. It is known that the 2013 Malibu Eco will bear trim similar to the LT package. The package will include Bluetooth and be the first Chevrolet to carry MyLink, the brand’s new infotainment system that links with the driver’s smartphone.

Getting a head start

Chevrolet marketing director Russ Clark sees the 2013 Malibu Eco as GM getting a head start on the competition’s race for next generation green automotive glory.

“There’s a lot of competitive activity coming,” said Clark. “This will be an opportunity to talk a lot about the car and the technology and the focus on Eco in a little bit of clear space.”

Aerodynamic efficiency of the 2013 Chevrolet Malibu Eco

Sources

Automotive News

Autoweek

Consumer Guide Automotive on eAssist

Daily Tech

Public dissatisfaction with the GM bailout has led some to call the automaker "Government Motors." Image: Mike Licht, NotionsCapital.com/Flickr/CC BY

According the the CEO of General Motors, the American public is over its anger at the U.S. auto industry for accepting government bailouts in  2009. While the rise of the Occupy movement demonstrates a growing dissatisfaction from the public regarding the collaboration of government and big business, the automaker points to its own poll as evidence of improved sentiments.

Polls says public opinion reversed

GM Chairman and CEO Dan Akerson cited a poll the auto giant commissioned from the PR firm Peter Hart Research Associate in July. According to the poll, 70 percent of Americans now have a positive opinion of GMC. A similar poll taken in 2009 showed the opposite.

In 2009, to avoid bankruptcy, GMC, along with most major U.S. automakers, accepted massive bailouts from the federal government. GM alone was given $49.5 million.

Akerson explained the reported turnaround at a  presentation at the Detroit Economic Club:

“I think America loves a competitor. I think General Motors, Chevrolet in particular, is part of Americana.”

Profits have been up

GM’s previous chairman was concerned that government ownership was hurting its sales. But Akerson, pointing to the more than $7.1 billion the company has already made in 2011, said “I do think that we’ve kind of gotten over that.”

Akerson said even though the government stays out of the day-to-day running of the company, it does limit pay and bonuses. He said he is disgruntled that the company will not be able to pay bonuses to its top executives no matter what profit it earns.

European losses

Auto sales have been way down in Europe, forcing some European automakers to cut staff and expenses. Akerson said GM will likewise have to do some shoring up with its European operations. He did not go so far, however, as to mention layoffs or closures.

In July, following steep declines in European auto sales, Akerson addressed rumors about its German-based Opel division.

“We don’t comment on speculation, and there’s been a lot of speculation. But I will say this: Opel is not for sale.”

At that time Akerson also speculated that there would be restructuring at the European factory. Thursday he said:

“Clearly you can’t have a unit as important as Opel is to General Motors chronically unprofitable. It’s not sustainable, and it’s not good for the company.”

Restructuring Opel

Monday, the company moved on plans to restructure Opel. Vice Chairman Stephen Girsky was tapped to replace Nick Reilly as overseer of the German company.

Sources

MSNBC
Bloomberg
Baltimore Sun