GM investing more in truck fuel economy, other improvements

General Motors Co. is beefing up spending on its next-generation light-duty, full-sized truck program to create more fuel-efficient, more attractive pickups.

The re-engineered and restyled light-duty Chevrolet Silverado and GMC Sierra pickups are expected to debut around the 2013 model year. The pickup program had been put on hold prior to GM's Chapter 11 bankruptcy filing. The trucks now will land in showrooms at about the same time as originally planned.

“Now we have more cash reserves to spend on product than we have had in decades,” said Scott Fosgard, a GM spokesman.

Fosgard declined to put a specific dollar figure on the added investment, saying only that it would be in the hundreds of millions of dollars.

“We are investing it in four brands, not eight,” he said. “We are investing it in 34 nameplates not 50. So we have enough money to do what we said we would do, and that is, we are going to build the world's best vehicles and we are going to play to win in every segment.”

Fuel economy boost

GM will use the additional funding to boost fuel economy. Specifically, it will reduce vehicle weight and make the pickups more aerodynamic, either through styling changes or features that reduce aerodynamic drag.

GM would not provide specifics, but one proposal that had been under consideration prior to the bankruptcy filing was electrically operated movable slots that would open or close the grille. A closed grille makes a vehicle more aerodynamic. The Cadillac Provoq crossover concept first featured movable grille louvers at the 2008 Detroit auto show.

Additionally, interior materials will be upgraded, and new undisclosed features will be added to the pickup line.

Unaffected by the plan are GM's next-generation heavy-duty pickups. The three-quarter ton 2011 Silverado 2500 and one-ton 3500 pickup will debut Feb. 10 at the Chicago Auto Show. The timetable for the debut of the Sierra heavy-duty pickups has not been announced.

Sales down

Last year, GM had combined light- and heavy-duty pickup sales of 470,906, a 33 percent decline from the previous year. Full-sized pickups accounted for 20.7 percent of GM's total vehicle volume in 2009, a drop of 32 percent from the previous year.

Last month, GM Vice Chairman Bob Lutz said that the redesigned Malibu had been rescheduled for sale sometime in 2011 -- the same year as originally planned. Several months earlier, in August, GM executives said the car would debut in 2012.

"Once we got out of the bankruptcy and started having money available, we were able to pull a lot of our programs forward," back to the original timetable, Lutz said at a December Chevrolet press event. He said "a bunch" of vehicles were being pulled forward but gave no details.

GM delays innovative new diesel truck engine

General Motors' deteriorating financial situation has caused the company to delay one of the most advanced engines that it has ever designed, a 4.5-liter diesel for light-duty trucks.

"We have to make tough decisions right now," said GM Powertrain spokeswoman Susan Garavaglia.

Truck enthusiasts were eagerly awaiting the engine, which would have started production next fall at GM's plant in Tonawanda, N.Y. The engine has unique cylinder heads that eliminate the intake and exhaust manifolds. Its lightweight block has advanced castings for the crankshaft-bearing journals and oil-circulation system.

GM had planned to install the engine in the Chevrolet Silverado and GMC Sierra pickups. The result would have been a fuel-efficient truck priced for less than the heavy duty diesel-powered trucks available now.

The move comes three weeks before a U.S. auto task force is set to determine whether the automaker deserves an additional $16.6 billion in federal aid. GM, kept afloat by $13.4 billion in U.S. loans received so far, is trying to shed brands, sell assets and curb spending as it battles a worldwide collapse in auto sales after four profitless years.

Selling the rights? GM has been awarded several patents for the engine design, and early tests have shown the new motor to be as smooth and quiet as a gasoline engine. Development of the engine was far along when the decision was made to put the program on hold. Rights to the engine may be sold to another company, Garavaglia said. If GM decides to revive the engine, it would likely take at least a year for it to enter production. Meanwhile, GM will not be out of the diesel truck business. The company will continue to offer the 6.6-liter Duramax engine in heavy-duty pickups and modify it as necessary to meet tougher emissions standards. GM also has just launched Two Mode hybrid versions of the Silverado and Sierra, which get an EPA rated 21 mpg city and 22 mpg highway. The 4.5-liter diesel would have raised the trucks' fuel economy into the mid to high 20s mpg. Last month, GM scrapped plans to build an engine plant for the upcoming Chevrolet Volt plug-in hybrid and Cruze small car. Instead, the engines will initially come from a European factory while an existing factory in Flint, Mich., is retooled to make the new engines. GM Powertrain Group Vice President Tom Stephens recently said that all of GM's future production plans are constantly being re-evaluated.