GM CEO Rick Wagner Steps Down, Replaced By Fritz Henderson

General Motors and Chrysler LLC will each be given capital and time to accelerate their attempts to restructure and survive, according to a government aid plan set for release today.

GM also confirmed earlier reports that Rick Wagoner has stepped down at the request of the administration. He will be succeeded as CEO by COO Fritz Henderson. Board member Kent Kresa, chairman emeritus of Northrop Grumman Corp., will be interim non-executive chairman of the GM board.

A government official, who asked not to be identified because the plan would not be announced by President Barack Obama until today, said GM will be given 60 days to determine the best path forward.

Chrysler will be given 30 days to complete a proposed alliance with Italy's Fiat SpA. If the deal is successful, the government could extend up to $6 billion in new assistance.

The official did not say how much capital each company would receive over the next several weeks, and did not indicate what long-term financing GM might receive if it shows that a turnaround plan can be successful. Chrysler has said it needs additional funding as soon as Tuesday to avoid a cash crisis. GM has previously said it needs more than $2 billion for April. GM has asked for more than $16 billion in new government loans, while Chrysler wants $5 billion to ride out the weakest U.S. market for new cars in almost 30 years. Ford, which is also struggling, is not seeking federal help. Wagoner was the second car executive to lose his job on Sunday. The board of France's PSA Peugeot Citroen fired CEO Christian Streiff and replaced him with Philippe Varin, who will take up the position on June 1. Peugeot last month posted a $460 million net loss and said it expected to stay in the red until 2010. "Mr. Wagoner has been asked to resign as a political offering despite his having led GM's painful restructuring to date," said U.S. Rep. Thaddeus McCotter, a Michigan Republican and member of the House Financial Services Committee. Said Rebecca Lindland, director of IHS Global Insight: "We had feared the Obama administration may force some of the executives out. But we don't really see how this would make GM the better, stronger company that Obama wants it to be." John Casesa, a managing partner at New York-based consulting firm Casesa Shapiro Group said: "GM lost its footing in the late 1970s and the board didn't seem to notice for another 20 years. Rick made a lot of decisions, but they came too late," GM and Chrysler have run through most of the initial rescue money and are at risk of bankruptcy without immediate help. The government has said it does not want to push GM or Chrysler into bankruptcy, although some analysts believe that is the only way to truly restructure the companies. Wagoner had been outspoken in his opposition to a Chapter 11 reorganization, saying it would drive away consumers and probably lead to GM's liquidation. But neither automaker has finished the cost-cutting overhaul dictated by the terms of their December bailout launched by the Bush administration that set a March 31 deadline for determining whether the companies can be saved.

Source: Automotive News

A Breakdown of OEM Plug-in Hybrid Vehicels (PHEV's) part 2

Here is second part of the OEM PHEV's breakdown that we will see soon. Actually, the Mercedes Sprinter is already in existence, albeit in very limited numbers. Also, the Saturn Vue plug-in was originally going to be released late this year but it now looks like it won't be until late in 2010.

Aptera 2h

Basically the same as its electric sibling, the Aptera 2h is a plug-in electric hybrid that boasts a 330 mpg fuel economy. The 2h uses a small gasoline engine in conjunction with the electric drivetrain to produce these numbers. The electric motor drives the single rear wheel and the gasoline engine drives the front two wheels, which makes it an all wheel drive. The hybrid mode Aptera will travel about 60 miles on electricity before the gas genset kicks on.

Opel Ampera

The Opel Ampera is basically a Chevy Volt that will be marketed in Europe. All of its specifications are the same as the Volt and so I will not repeat them. The difference will be exterior styling cues that make it look much more "edgy" than the Volt.

Persu Hybrid

Here is cool concept. The Persu is a three wheeled PHEV that allows the body of the vehicle to tilt into a turn, much like a motorcycle. The rear two wheels stay on the ground and the suspension allows the rest of the bike to tilt up to a 45 degree angle. The Persu (formerly Venture) will have a top speed of 100 mph and is expected to be rated at 75 mpg fuel economy. The Persu will have an estimated MSRP between $20,000 and $25,000 and will be available in 2010.

VW Hybrid

Volkswagen has entered the PHEV fray with their plug in offering, the VW hybrid. Powered by VW's "Twin Drive" system, the VW will travel 31 miles in all electric mode before the gas generator kicks on. The car will be based on the Golf model and utilize a 122-horsepower diesel engine, twinned with an 82-horsepower electric motor. Plenty of power there. Look for the VW hybrid to be available in 2010 with an MSRP to be determined.





Mercedes Sprinter hybrid

The Sprinter was the first plug-in hybrid ever to be offered by an OEM. The Sprinter is great for in town deliveries as it can travel roughly 20 miles on electric power alone. It is coupled in parallel with either a gasoline or diesel engine that drives the wheels and charges the battery. The electric motor's output is 70 kW's and the NiMH battery pack provides 14 kWh of juice. Imagine if all the delivery services in the world used this technology, how much fuel could be saved.




Saturn Vue

The Saturn Vue plug-in hybrid variant was one of the first to be announced by a major auto manufacturer. Originally publicized to be available in 2009, the Vue is now said to be ready by late 2010. With Saturn's future in question, even this date may slip. The Vue PHEV is going to use a smaller battery pack and offer only 10 miles of electric range before the genset kicks in. It would be configured as a parallel hybrid, like the Prius and offer significant fuel economy gains. Let's hope this car makes it to market, although I would like to see Saturn increase the electric range to 20 miles.

Well, there you have it. My abridged listing of the PHEV's we will like see in showrooms soon. If I missed a model, please post a comment so I can add to the list.

Saturn Letter Describes Spinoff Possibility

The Saturn Vue



A letter was sent out last night from Jill Lajdziak, who is Saturn's General Manager, warning customers that the company may be spun off from General Motors. This would be the best case scenario for the plucky auto manufacturer.

As part of GM's restructuring plan submitted to Congress Tuesday, the Saturn brand will be phased out with the last models appearing in 2012. GM is also trying to sell the Hummer line. Eliminating Saturn will reduce GM's production costs, payroll costs, advertising costs, etc., but it sure is bad news for existing, loyal Saturn owners.

Saturn was in the process of producing a plug-in Saturn Vue, but since this financial crisis, I have heard nothing further about its release. In fact, they originally were going to market the plug in version this year but that date has slipped. The last date I heard for this car was in 2010, but it looks like that is in jeopardy. The plug in Saturn Vue was going to be a great car because it could run for about 10 miles solely on battery power. For many folks, this means that the local running around and short errands could be accomplished without gasoline.

Let's hope Saturn can somehow survive.

From Automotice News:

Saturn has begun alerting customers that it may be spun off by General Motors as an independent marketing and distribution company.

In a letter sent to about 1.5 million Saturn owners last night, Saturn said it would have to line up products to sell -- either from other manufacturers or from GM in the role of a vendor -- after GM's current commitment to build Saturn products ends after the 2012 model year.

"The Saturn Distribution Corporation already exists as an indirect subsidiary of GM," wrote Jill Lajdziak, general manager of Saturn, in the letter. "It's the entity with which our retailers have their franchise agreement.

"An independent Saturn would still have its great retailers, and it would continue to source current products from GM through 2011. If successful, SDC at that point would source products from other manufacturers."

A Saturn spokesman confirmed the letter and its contents. The purpose of the letter is to reassure current and potential Saturn owners that Saturn is a viable brand and that GM will back its warranties and product quality, says spokesman Steve Janisse.

The goal of a spinoff would be to find future vehicles "that match the Saturn Brand: fuel-efficient, safe, reliable and affordable," Lajdziak said. "From a retailing perspective, we would build on our core strength of unmatched customer service."

No decisions for 60 days

Meanwhile, Saturn dealers say Saturn asked them on Wednesday to make no decisions about what to do with their stores for at least 60 days. That's because Saturn has formed a study group consisting of Saturn retailers, GM employees and independent consultants to do the "hard-core due diligence" work on what it would take to spin off Saturn, said Janisse.

The subcommittee will study possible sources of future product, either from GM or another manufacturer, which might take over Saturn, Janisse said. Another possibility is for an independent investment company to take over a spun-off Saturn and give it the money to buy product.

"That's what that subcommittee is studying, and they're working day and night on this," Janisse said.

"The goal is within 60 days to have a solid understanding of if the current spinoff option is valid," Janisse said.

But he said a decision might be delayed if the process isn't complete.

In its viability plan submitted to the U.S. Treasury Department on Tuesday, GM said Saturn will remain in operation through the end of the planned lifecycle for all

Saturn products. In the interim, GM said it would be open to the possibility of Saturn retailers as a group or other investors present a plan that would allow a spinoff or sale of SDC. If that didn't occur, GM said it planned to phase out the brand.