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GM disbands high-performance vehicles unit

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General Motors, focusing on mainstream products in a battle to survive, has scrapped a unit that produced high-performance vehicles.

GM on Wednesday disbanded High Performance Vehicle Operations, which is based at the company's suburban Detroit technical center, and redeployed its engineers, spokesman Vince Muniga said.

"All high-performance projects are on indefinite hold," Muniga said. "The engineers are moving into different areas of the organization, and they will work on Cadillacs, Buicks, Chevrolets and Pontiacs."

Full story at the link...


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I hope the Guru is doing well

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Sorry to hear this, as I am a fan of their work. However, none of the likely upcoming Government fuel economy and emission regulations are likely to favor 568 hp supercharged V8's.


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Shutting down the R&D pipeline is not a positive indicator for future product development. Of course, GM as we know it today might not have a future. Meanwhile, here I sit waiting for a CTS Coupe!

Motor Trend has this to say about this (non) event.

* * * * * * * * * * * * * * *

GM's Performance Division: No Future Product...For Now; CTS-v Coupe Possible

DETROIT - There's a bit of confusion following Automotive News'

report Wednesday that General Motors has shut down its High

Performance Vehicle Operations. HPVO's 60 engineers have been moved

to other projects, mostly alternative fuel/powerplant vehicles and

getting better fuel mileage out of conventional internal combustion

engines, for example.

GM will continue to produce low-volume performance cars that have

been designed, including the Cadillac CTS-v sedan, Chevrolet Cobalt

SS and HHR SS and, of course, the Australian-sourced Pontiac G8 GXP.

Spokesman Vince Muniga likens it to Ford's shutdown of its Special

Vehicle Team about three years ago. Ford has just unveiled SVT

versions of the F-150 (Raptor) and 2010 Taurus (SHO).

And because the CTS-v sedan has been on sale for several months,

there's a good chance you'll be able to buy a CTS-v coupe some time

in 2011, following the 3.6-liter V-6-powered coupe's planned launch

in late 2010.

Corvette engineering and design were never part of HPVO, so ZR-1,

Z06 and even Camaro SS production are not affected. We've reported,

however, that Chevrolet's Z/28 version of the Camaro, which would

have used the CTS-v's engine/tuning, is on indefinite hold.

So what does this "hiatus" affect? Mostly future product that would

have gone through the HPVO pipeline. Frankly, that makes this almost

a non-story, as cash-strapped GM has put much of its future product

on hold in order to get the 2011 Chevrolet Volt and Cruze on the

market (the new Opel Insignia, just launched in Europe, too). You

were expecting, maybe, a Volt SS or Cruze SS?

Indeed, the future of GM's performance division relies as much on

what emissions and fuel economy standards the government imposes on

the auto industry as it does on whether the automakers get any more

federal money.


Drive your car.

Use your cell phone.


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GM Statement Regarding High Performance Vehicle Operations

Due to a refined focus of work on core products, resources at General Motors High Performance Vehicle Operations (H.P.V.O.) have been temporarily reassigned.

The 60 engineers impacted by the decision are a talented, experienced group and have been placed in other engineering operations of General Motors to work on core, volume products, including further improvements in fuel efficiency and advanced propulsion. These are talented engineers who will add their expertise to the various teams they are joining.

When market conditions and public demand for high performance or specialty vehicles change in the future, General Motors will return these resources to their original tasks.


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Thanks JimD,

That cleared up some things.

The first article I read was written in a very alarmist tone.

Don't rest easy. GM is still in deep doo-doo.

Europe has yet to be heard from, and their song is very ugly indeed. Eastern Europe is nearly beyond economic salvation and the Western European banks are deeply exposed there. Far, far more than are American banks. AND the Western European banks have sub-prime mortgages to deal with. It's VERY UGLY.

GM's European profits will not be large. In fact, they just won't.

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There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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