Due to rising development costs, the folks at General Motors are having to delay a number of models that were originally scheduled to launch within the next couple of years, namely the Cadillac CTS Coupe, Buick LaCrosse, Chevrolet Cruze, Saab 9-5, and Saab 9-4X.

The Cruze was set to replace the Chevrolet Cobalt and delaying it now puts GM behind the small car trend. The Cruze is a very important car for the General, but GM is determined to have the Cruze released in the U.S. by 2010. The CTS Coupe and LaCrosse aren't expected to be high-volume cars anyway, so delaying these models shouldn't hurt too much. As for the Saabs, the 9-5 is an old car riding on an old platform and is in desperate need of a refresh replacement, while the 9-4X is still in final development at this time.

In the meantime, GM is expanding its development in other areas -- namely plug-in hybrids. The Chevrolet Volt is currently in the works, but we're told that other plug-ins could be arriving within the next few years.

+ Motor Authority: GM confirms delays for Cruze, CTS Coupe and Saab models

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With the auto market slump expected to ease in 2010, General Motors has been desperately trying to cut costs in order to keep afloat. Currently, the company is spending $1 billion per month and it hopes to cut this down this figure by downsizing the workforce, reducing benefits, and delaying the introduction of a select few models.

GM CEO Rick Wagoner is hoping that these cost cutting measures will raise around $15 billion. If total vehicle sales fall to 14 million units in the United States the company would still be able to remain operational. Last year, the U.S. market bought over 16 million vehicles. However, only 13.4 million units are expected to be sold next year.

The result is word that Chevrolet is delaying the launch of the Cruze, pushing it back to 2011. While the Cruze may be a heavy asset in the competition with Japanese automakers, the postponement is apparently necessary to cut costs and help the company ride out the auto market slump. Word is that the next-generation Chevrolet Malibu is also another model being held back, this time for approximately six months more until 2013.

The Cadillac CTS Coupe and the Buick LaCrosse have also been put on hold at the moment. Though their initial debuts were scheduled to be at the Los Angeles Auto Show in November, plans have been changed to unveil them at the Detroit Auto Show early next year.

As for the workforce, GM is predicted to lay off up to 5,000 employees, as well as cut 401(k) contributions for many of the workers.

+ Motor Authority: Report: GM may delay Chevrolet Cruze amid rising costs

Corvette Racing Program Manager Doug Fehan announced that Corvette chief Tom Wallace will be retiring from General Motors effective November 1st. This announcement was made at a Petersen Museum event honoring Corvette Racing history.

Some speculation suggests that Wallace's decision is related to the production plan of the C7 Corvette because he may not be willing to commit to the vehicle's extended launch schedule. The C7 was originally set for a 2012 model year launch, but it has reportedly been pushed back to 2014.

This announcement has come as a shock to many, especially since Wallace was always so dedicated to the Corvette marque. We had a chance to speak with Mr. Wallace last year at Laguna Seca while showing the winners of our "Be Corvette's Boss" contest a good time and really admired his enthusiasm for all things Corvette. Wallace's extensive knowledge of the performance car market will indeed be missed.

+ Autoblog: Corvette Chief Tom Wallace retiring (via Corvette Action Center)

http://online.wsj.com/article/SB122419486740342439.html?mod=djemalertNEW...

The Wall Street Journal reports that GM and Chrysler "are accelerating merger discussions amid strong support from potential lenders that are eager to see a deal done."

When you're up to your neck in debt, and your lender tells you to do something, you listen. I would not be surprised if this deal is inked within a week, with Monday being the most likely day.

With twelve World Touring Car Championship wins under their belt using the Daewoo-built Lacetti, Chevrolet unveiled the new Cruze based WTCC contender for the 2009 season.

Equipped with a paintjob that appears to be some sort of digital camouflage made up of Chevrolet logos, the WTCC Cruze is already undergoing testing for its upcoming debut in Curitiba, Brazil next spring. So far, the team seems rather confident. According to motorsport manager Eric Nève, the "new Cruze will be the next milestone in Chevrolet Europe's motorsports history."

The championship racers are all based on compact and midsized cars, powered by 2.0-liter, four-cylinder engines. All the cars also have to be derived from its manufactured counterpart though heavy modifications are allowed. Judging from the pictures, the Cruze seems to at least look the part. Click through the post to read GM's official press release.

+ Autoblog: GM unveils Chevrolet Cruze WTCC racer

Sadly, General Motors COO Fritz Henderson told reporters at the Paris Motor Show that GM has no plans to send minicars to the U.S. Lack of demand and stringent crash-safety regulations seem to be the company's main determining factors. According to Henderson, although he recognizes the popularity of the Smart cars, he believes that this is only a phenomenon and doesn't feel that there is a place for similar sized Chevrolet cars in the U.S. market.

That said, Americans are still buying up Smart cars and U.S. Smart distributors had to upgrade its sales forecasts by almost 50%. Toyota may even bring its IQ minicar over as a Scion. What is in store for the Beat, Groove and Trax? So far, their futures seem uncertain.

+ Motor Authority: GM rules out launching minicar in U.S.

 
General Motors said last Friday that 80 of its largest global manufacturing plants will be made "landfill free" in order to reduce their impact on the environment and raise profits from recycling materials.

"As we develop new solutions in vehicle propulsion, GM is also making significant progress in reducing the impact of our worldwide facilities," said GM group vice president of global manufacturing and labor Gary Cowger in a company statement.

33 global operations have recently attained landfill free status, which brings the total number to 43. To be considered landfill free, these operations much recycle all production waste and garbage.

Global recycling efforts generate about $1 billion a year in annual revenue in metal scrap sites. GM alone expects to produce about $16 million from cardboard, metal, wood, oil, plastic, and sales of other materials in North America.

The company will convert around 50,000 tons of waste to energy, and around 3 million tons will be recycled or reused.

+ Automotive News: GM vows to boost recycling at plants

Thousands of drivers relied on General Motors’ OnStar service this past weekend, for getting out of Hurricane Gustav's way. The callers, who were mostly calm, patiently asked the operators for the best path out of New Orleans, Louisiana and other Gulf Coast cities.

OnStar stepped up its staff to around 500 operators and set up emergency plans at the Pontiac, Michigan, Oshawa, Ontario, and Charlotte, North Carolina call centers. Calls concerning the storm were transferred to specially trained OnStar advisors, many of whom had been on duty during Hurricane Katrina.

Unsurprisingly, people were much more prepared for Gustav than Katrina. In fact, the advisors reported that callers were generally leaving well in advance of Hurricane Gustav.

"There's a lot of people that are stranded on the evacuation routes," said Brad Williams, a service manager for OnStar at the command center in Downtown Detroit. "They're more prepared. They know what questions have been asked," he said.

Because the service had expanded from around 3 million to 5 million subscribers since Katrina, the managers expected Sunday's calls to reach 75,000 due to the hurricane –almost double the normal amount. As it turns out, calls reached into the thousands early Saturday, and were pouring in at over 3,000 per hour on Sunday.

+ The Detroit News: Drivers rely on OnStar to evade Hurricane Gustav

http://money.cnn.com/2008/08/18/news/companies/gm_employee_price/index.h...

As last year's cars languish on the lots, GM is hoping "employee pricing" will clear them out. This CNN article says that's typically 10% below invoice.

As part of an effort to reorganize the company, General Motors has decided to cut back on its truck production and also reduce the warranty terms on its U.S. Saab vehicles in the face of the recent decrease in sales.

Even after the American Axle strike earlier this year that cost the company $2.8 billion and lost 330,000 production units, GM still decided to drop its pick-up output by a further 117,000 units in order to meet its target of reducing the annual output by 300,000 trucks. Shifts at the truck dominant plants in Moraine, Ohio and Shreveport, Louisiana will be cut to meet the lower goal.

While decreasing truck production is a strategy common in GM and its rivals such as Ford, the Saab warranty reduction is a completely new approach. Effective immediately, it drops the coverage on all Saabs sold in the future from the standard 100,000 miles or seven-year coverage to a 50,000 mile or four year coverage. That said however, GM will still continue to offer free maintenance for three years or 36,000 miles.

+ Motor Authority: GM to cut pickup production, shorten Saab warranties