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General Motors scraps high-performance division

02/18/2009, 7:26 PM

By Nick Aziz

General Motors has disbanded its High Performance Vehicle Operations unit, which was responsible for creating such vehicles as the Cadillac CTS-V, Corvette ZR1, and Pontiac G8 GXP. GM’s high-performance vehicles will not be discontinued, but future replacements to these cars might never materialize. In other words, when GM’s existing high-performance models reach the end of planned production, they could be gone for good.

All high-performance vehicles currently under development have been shelved. It is not clear if this includes cars like the Cadillac CTS-V Coupe, which is probably very close to being completed.

“All high-performance projects are on indefinite hold,” spokesman Vince Muniga told Automotive News. “The engineers are moving into different areas of the organization, and they will work on Cadillacs, Buicks, Chevrolets and Pontiacs.”

Muniga added there are no longer any plans for performance-oriented variants of any upcoming cars.

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02/18, 7:36 PM

posted by:

SouthernCalifornia

So no more V’s?

02/18, 7:40 PM

posted by:

leftwingagenda

the guy transferred from the ZR-1 project to Buick must be pretty pissed right about now…

02/18, 7:41 PM

posted by:

Blakkarr

This is really unfortunate.

Does this mean that specific team s for any given division may be assigned to develop performance-oriented (i.e. “super”) versions or will they be developed along with the regular cars instead of separately?

The CORVETTE development team would not disband after the initial project is done. They would be put to work on the next Z06 and ZR-1 almost immediately. Then disbanded when the project is done.

Then again GM could do what FORD did with SVT apparently, bring back the performance team when times and plans better and more open to them.

We will see.

02/18, 7:44 PM

posted by:

Frank

Does anybody notice how much smarter FORD is than GM. Yeah, we’ll see.

02/18, 7:45 PM

posted by:

S1L1SC

GM is really shooting its self in the foot with some of their decisions….

02/18, 7:45 PM

posted by:

Need more oil for GM is an idiot

Everyone would rather buy an S line audi.

02/18, 7:49 PM

posted by:

bolex

No more oil for GM…. :(

02/18, 7:56 PM

posted by:

05Z88Path

If GM survives…I think it will take them 10 to 20yrs before they can fully undo the damage they have done to themselves. Decisions such as this, while it may help the bottom line today, will only serve to lengthen that painful process…

02/18, 8:05 PM

posted by:

johnnycanuck

Tape stripes, decals and body side cladding: no one will ever know the difference. It worked in the 80’s… right?

02/18, 8:31 PM

posted by:

dickvictory

It really is about time. Let them go. When is the last time you got into a vette and got a truely good feeling.
Its been junk for to long and its time is done. the cts-v has always been somewhat of a joke and gt8….. well thats about as low as it goes. what was next a new z32.

Dont get me wrong the z06 was a fast car but it really lacked in style and quility. the vibrations and noises where a little harsh when comparing it the the used nsx or supra.

Good bye gm.

02/18, 8:31 PM

posted by:

Hyperion

Not a good decision. Perhaps they should limit the high performance division to their M5-fighter CTS-V and Corvette ZR-1 but to cancel the entire division? All I can say is that those manual transmission equipped V8 sedans were all that interested me in the Pontiac and Cadillac divisions at all. And no replacement for a world-killer Corvette in a few years? Really… instead of making future replacements of these types of vehicles lighter, turbocharged small displacement high performance vehicles, the decision is just to not build high performance vehicles. VERY smart move, ayup…

02/18, 8:42 PM

posted by:

elviososa

their high end cars are over priced anyway….who cares!?

02/18, 8:52 PM

posted by:

Dante_JoseCuervo

Gotta love how NMOFGM has just disappeared.

02/18, 9:15 PM

posted by:

pursang

R.I.P. Cut down in their prime by a company that wasn’t.

02/18, 9:22 PM

posted by:

CADDY-V

Yo Dick…Are you a REAL idiot our do you just play one on this site????
You say the CTS-V is a joke???? WHAT??? I personally own the new CTS-V. Have you ever even seen one? Last I checked it did beat the M5 and it’s 30,000 less. Can somebody help educate this guy????

02/18, 9:23 PM

posted by:

eff1Fifty

Dante_JoseCuervo

Gotta love how NMOFGM has just disappeared

… Dante, i LOVE the way you think!!!

02/18, 9:24 PM

posted by:

eff1Fifty

CTS V is amazing!

02/18, 9:41 PM

posted by:

ultimate_ed

And this after the Top Gear guys just finished gushing over the V and ZR1 in this week’s US broadcast on BBC America. Hopefully the team can be reformed in a few years.

02/18, 9:47 PM

posted by:

DrFill

BREAKING NEWS!
GM discontinues every sedan, save Chevy Aveo, in a new bid to lead industry in EPA!

THIS JUST IN!
Buy a Saturn in 2010, and you get a Corvette engineer free! Just pay shipping and handling!

IN OTHER NEWS
GM’s Wagoner named Emporer of Oldsmobile and Czar of Cutlass Supreme
DrFill

02/18, 9:54 PM

posted by:

tyler_is_aero_tt

DrFill you’re almost at the same level as NMOFGM.

02/18, 10:09 PM

posted by:

Need More Personal Lubricant For GM

Maybe ford could sell them so eco boosts

02/18, 10:16 PM

posted by:

andy

they should have discontinued GMC before doing this

02/18, 10:28 PM

posted by:

johnnycanuck

Yup, might as well merge with Toyota now and get it over with.

02/18, 10:33 PM

posted by:

Need Mo Betta oil for GM

MISINFORMATION

02/18, 10:34 PM

posted by:

andy

**** toyota, lexus is weak, toyota is boring, and Scion is, well its Scion

02/18, 10:36 PM

posted by:

bauer100

GM’s high performance cars are mostly niche vehicles, low production etc. I doubt this would hurt anything, joe public doesnt know what a ZR1 or a CTS-V is.

02/18, 10:45 PM

posted by:

DB9

Is this surprising? Well? What did you expect! Wagoner is repositioning the company for survival and at best a 10-15% market share. It’s over! GM is starting the process for an extreme retrenchment of operations. The company now depends on the extreme political left for its very survival. If Opel is smart they should try and extricate themselves, if at all possible, from the conglomerate that we “affectionately” refer to as General Motors. At this point it is doubtful that Holden and Vauxhall will make it, as each is entirely dependent on the Umbrella of GM to survive. As for the rest of the industry? If your market is 30K and over – BYE, Bye – its been nice;-)

Yes people, it is that bad out there and not just for GM! It appears that most of the populace still does not comprehend what is going on economically – the very survival of capitalism itself!!! Just hope that the last trick up their sleeve is not used – start the presses. Who’s next and what sector: BAC, GS, BA, GE, etc., etc., No Kids, as you can see, I have not been blowing smoke over the past four and a half months. It’s all coming to pass…:-((( Sadly, it’s not over yet…

DB9

PS. A key point, if normal credit was being extended to the average household; they would not be able to afford a vehicle over $30K. This is in contrast to what has been going on for more than 20 years now – the party had to come to a stop at some point – Well – it has arrived! Hey don’t shoot the messenger;-)

PS. to the PS. Rick and Bob, well what can y’all say;-)http://www.youtube.com/watch?v=W75QrSNj82o

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

“In the part of this universe that we know there is great injustice, and often the good suffer, and often the wicked prosper, and one hardly knows which of those is the more annoying.”

Bertrand Russell

02/18, 10:59 PM

posted by:

MHW

This is not good news, despite what you may think of GM the fact remains that both the CTS-V and ZR1 are world-class cars. Even though they are low volume they are very important from an image standpoint.

02/18, 11:30 PM

posted by:

02VortecAVALANCHE

Their goes the wind in my sails! I was waiting for them to turbo charge a Avalanche (which GM will keep because this is the only truck that keeps up in sales) Or even re-engineer the corvette and make it faster than the ZR1 so it can beat that new lambo that just came out.

02/18, 11:58 PM

posted by:

3deuce27

Get a clue …It’s the end of the world as you knew it.

Painful, but over due.

02/19, 12:03 AM

posted by:

atoms

DB9 I would disagree with you on the fact that holden has a lot of support in australia, vauxhall on the other hand might not fare so well as you predict… on another similar note the high performance devision didn’t really do much to make the G8 GXP, its basically an HSV R8 clubsport with different sheet metal.

02/19, 1:31 AM

posted by:

ninetysixvert

Need more oil for GM – Need more performance for GM!? Maybe reality is finally hitting you, as is puberty.

02/19, 2:03 AM

posted by:

strongbad

The hype around ‘image cars’ is just that. The Viper never saved Dodge or made people think an Avenger was some sort of ‘next best thing’. The ZR-1 Vette looks like a normal Vette to 99% of America. How many people have been influenced by a Mustang GT500KR to go buy a Focus? These cars do NOTHING as halo vehicles. People are just not that stupid to think there is some kind of relationship there.

Before the world collapsed, Honda, Toyota, Nissan, Mazda, did not need any Halo cars to sell what they had. They just made high quality, good mileage, decent looking appliances that America wanted.

I love the CTS-V and ZR-1, and Viper for that matter, but their departure will have 0 effect on sales. It will raise the current and future value of the ZR-1 though.

02/19, 3:30 AM

posted by:

AnonymousCoward

Can the real Need More Oil for GM please stand up!

02/19, 3:36 AM

posted by:

fordman

Dickvictory, put that dick where the sun don’t shine!

02/19, 4:12 AM

posted by:

idrinorbarsaku

I can’t believe this!! the one time GM comes out with some(aka…2) cars that rival or do better than the competition(CTS-V/ZR1), they cut the division that helped create them!!! CAN YOU GUYS AT GM REALLY BE THAT STUPID??? I guess so!!! I used to be a gm fan, but i think i can picture a new ford in my garage in a couple of months!

02/19, 5:56 AM

posted by:

Mutant@DCX

1973 all over again.

I forget… this when they muscle cars died, or is it when Roe Wade allowed abortions?

02/19, 9:26 AM

posted by:

bigjimid

idrinorbarsaku – You said it. The V and ZR1 are great. Granted I’ve never driven a ZR1, but CTS-V on the other hand is freakin nice! And looks good too. It would have made an awesome CTS-V Coupe in the new coupe style. Unless that’s already planned, I don’t know, I don’t follow GM, except on here lol.

NMOFGM – Get well soon. I still need someone to laugh at and other still need someone to hate.

Maybe he’s staking out at the Marriott waiting for his chance to “shake the hands” (and shank) of Wagoner and Lutz for this decision.

02/19, 9:27 AM

posted by:

zfenderguy

Writing was on the wall about that decision for some time now I think. Just like the mid 70s, the party’s over. Increasing enviromental pressure, serious threats to our oil infrastructure and general bad times for the company pushed these great cars over the cliff. Like deja vu all over again.

Just think about what kind of money a mint ZR-1 or CTS-V is going to bring at Barrett Jackson in 2045

02/19, 9:39 AM

posted by:

Z06ified

This is just posturing for the likes of Nancy Pelosi and most of Congress, who can’t understand a need for anything more than 30 hp. Think about it: there is no way they could justify asking for $14 billion more and say they’re going to spend a portion of it on high performance vehicles. They would never hear the end of it, just like when the CEO’s flew to D.C. on private jets. All it is is an image. Boring cars are viewed by politicians as fiscally responsible. High performance cars are not.

5 years from now when GM gets itself out of this hole and the economy turns around, and the loans are paid back, they’ll bring back the performance division. Performance divisions are pretty easy to turn on and off as needed. It’s not a forever thing.

02/19, 9:56 AM

posted by:

shaver

Wow, I am going to have to buy a lot of beer. We just got a quick tour of the greatest era in automotive history. Now it is officially over. Will we be like guys from the muscle car era, 20 years from now? Wishing we kept our Hemi Cuda or SS Chevelle.

02/19, 10:07 AM

posted by:

SHOspeed

I totally agree Z06ified. Look what Ford did with canceling SVT, but then bringing in the ford performance group that offers many modifications for a mustang straight from the factory, and it seems SVT is coming back. I am sure that this is not a permanent thing and just something they must do for the government loans.

02/19, 10:43 AM

posted by:

Zcarsales

Its like the 1979 Ford Mustang/Pinto all over again. I’m about to cry.

02/19, 11:13 AM

posted by:

oldraven

I expect a press release from GM in the next 24hrs to clear this up. The projects are likely being put on hold, and LLN jumped the gun to tell us all that they’ve axed the division altogether.

Don’t act like it’s the first time this has happened.

02/19, 11:28 AM

posted by:

wbent

Performance divisions when looked at strictly by bean counters eyes are always a failed business case. When looked at through the prism of contact sales and preceived image they are very important. When Ford allowed SVT to exit for a number of years it did affect floor traffic and image. I believe GM will lose residual business from this decision, cafe standards do have a factor in this but all you do is adjust volumes and product focus. Sad really

02/19, 11:42 AM

posted by:

zeegone

Ok morons out there talking bad about the CTS-V, are yall really serious?!?! The last V was a great car that only suffered from wheel hop and that was it. Go drive a new one or read every car magazine out right now praising how badass it is then come to a car forum with actual info before you down it.

The CTS is already an incredible car, the V only builds on top that. It’ll out run any 4 door sedan on the road right now including any M, AMG, or Audi sedan. Who would have a problem with a 556-hp engine and highly sophisticated suspension (the shocks are similiar to those used on Ferrari’s just as an example)

02/19, 11:47 AM

posted by:

Ring-Taxi

V Series is a joke anyway, except the new CTS-V whose lone claim to fame is beating an aging E60 M5.

XLR-V – failed to undercut the SL63, as Bob Lutz confidently ensured. Even with 10 grand sitting on the hood.

STS-V – can’t hold a candle to the E60 M5. A very poor man’s E55 AMG

old CTS-V – big motor with a fragile rear end = abysmal engineering. American M5? On which planet?

02/19, 11:53 AM

posted by:

Bankruptcy2009

GM can not justify mediocre and Pass Off Fake Hybrids like the Malibu or Tahoe and then ask for more TAXPAYER Money but they continue to go in the opposite direction with Huge v-8’s. While most of the nation GETS IT. A CERTAIN STUPID GM FAN Club does’nt get it. Its called all auto companies operating within the US-canadian borders and throughout the world really should be working toward energy independence. And not for more dependence on it and the Middle east to aquire it. its also called if you want more Horsepower be environmentally Friendly and intelligent about how you produce that Extra Horsepower so you can act like a Juvenile behind the wheel. GM clearly does not get that picture with old Pushrod Gas Guzzling v-8 Engines. Now if they were smart like Ford they would have branched out there product line to really include all other modes of transport but they have’nt and still are lacking. True Hybrids, Plug INs, Electrics, Ecoboost- smaller motors more power less fuel.

02/19, 12:00 PM

posted by:

oldraven

Have you ever heard of the LNF Bankruptcy2009? And GM’s small block V8’s are some of the most fuel efficient in the world, when geared properly. Since when has OHC made for more efficient V8’s? Bigger and heavier, maybe, with greater friction losses, which do not make for increased efficiency.

02/19, 12:51 PM

posted by:

yarddog82abn

WAY BACK IN THE DAY GM LEFT NASCAR…… AND THEY CAME BACK…… THE SAME WILL HAPPEN HERE….. AND IF NOT THIS WILL BE THE BIGGEST MISTAKE THEY HAVE EVER MADE…

02/19, 1:28 PM

posted by:

oldraven

I still say LLN ran a story without waiting for the facts.

02/19, 1:48 PM

posted by:

zeegone

Lone claim to fame? I do agree on the other V’s- the XLR-V was under-engineered, the STS-V too heavy but still fun, and the 1st CTS-V did have some issues but it’s not as if the M5 of the past or present are bullet-proof anyway though. The new CTS-V is no joke and saying the M5 has aged sounds just like a lame excuse to beat up on the V- the M5 is still up to date. I have no doubt the next M5 will run with or most likely pull away from the CTS-V but thats no new news, they’ve been playing leap frog for years between M, AMG, and RS line. Luckily we now have a new contender entering the ring- the V. Seriously everyone, get over putting down GM- they’re only getting better and better, Cadillac above all.

02/19, 2:20 PM

posted by:

JakeK66

Who was right? Who was right?

I called it saying people should buy up as many V8-V10 muscle cars as they can. SRT-8’s / Vipers / Corvettes / Challengers / G8’s whatever. This is what happens when higher fuel standards and poor economic climate stares this iondustry in the face. Welcome to the mid-70’s people and Jimmy Carter is your president.

We’re at the tail end of a golden age of the auto industry. Now is when to invest in anything you can – cars/stocks-whatever. Everything is discounted, you want to be rich? This is the time to do it!

02/19, 2:23 PM

posted by:

NismoSentraKen

==>>oldraven, i heard AND read this same identical news like 3days before LLN. Belive me, they aren’t jumping the gun. This reminds me of 1973 all over again. Oh, and i wonder why for some strange reason i keep hearing rumors about a 4cylinder Mustang coming….

02/19, 2:42 PM

posted by:

RaineMan

Sad… but expected.

Ford killed off SVT a while back and we are still seeing high-performance Mustangs and F-150s being cranked out.

It’s not the end.

02/19, 3:04 PM

posted by:

andy

zeegone… the magnetic ride control (or what ever its called) in the ferraris is actually taken form the corvette (according to Jay Leno atleast), and the CTS-V uses the same system

02/19, 3:56 PM

posted by:

Tripleoneflipper

Lets hope all American manufactures fail….what a bunch of dumb f$%k’s on here.

02/19, 6:56 PM

posted by:

Ring-Taxi

I wasn’t really hating on the new CTS-V, since it’s obviously a fine ride. It was meant as a slight to Bob Lutz and his trash talking ways. The E60 M5 isn’t ancient, but then again there have been no major updates (except the SMG recalibration) since being launched almost 4 years ago. And yes, BMW’s aren’t known for reliability, but how often do you hear about M’s having mechanical problems because of hard launches?

One more thing, Delphi (not owned by GM anymore) developed the magnetic shocks for the Corvette, CTS-V, 599 GTB.

02/19, 8:28 PM

posted by:

zeegone

True the last V did have those issues again, but that was the division’s first V ride so give it a little break. M’s are more well known for their jerky and unreliable transmissions. Until I drove a new V I would have always taken a AMG E63 or M5 over any Caddy. After that drive though, I had to reconsider!

02/19, 8:29 PM

posted by:

pursang

R.I.P. –cut down in their prime by a company that wasn’t.

02/19, 9:10 PM

posted by:

NismoSentraKen

===>>RaineMan, u r mostly right. But ford didn’t kill off SVT. They just “put them on the back-burner” for a little while. If they “killed off SVT” then the GT500 wouldn’t have SVT printed on all 4 center-caps of its rims. This situation with GMperformance here, is a little bit different. It might be a looong time before u see these factory souped-up cars back again, unlike the short 4 or 5year break that SVT took.

02/19, 9:10 PM

posted by:

DB9

Well, as I said above…it begins…

“Bedfordshire, England – General Motors is seeking investors to buy a stake in its U.K. subsidiary Vauxhall, according to the Daily Telegraph.
“The automaker said that it would consider an alliance or partnership, but has no immediate plans to sell the subsidiary. GM said that it will likely cut jobs in the U.K., where it has 5,000 employees.
According to reports, General Motors will also consider taking on partners for Opel, based in Germany, and that Saab’s board of directors has called an extraordinary meeting to consider its future. General Motors has said it plans to make Saab an independent business by the 2010; the Swedish government rejected a request for aid by GM for the struggling auto company.”

~~~~~~~~~~~~~~~~~~~~~~~~

“The truly global nature of GM’s restructuring plan is become more and more evident, as GM is considering cutting the workforce and selling some of its stake in its popular Opel European division.
“Management is willing to consider strategic third-party partnerships, alliances and equity stakes in case such an approach is seen as beneficial for GM Europe and Opel’s viable and sustainable future,” GM Europe President Carl-Peter Forster said.

The German state of Thuringia is a prospective investor in Opel. The eastern state is home to an Opel plant, and said it was prepared to take a direct stake if it was “released into independence.” Thuringia’s economy minister, Juergen Reinholz, said it could not offer help until detailed plans about the division’s future were available.

“We can’t be precise about our help until we hear about precise plans from General Motors. But in first discussions about a guarantee, a sum of €20 million to €40 million ($25.4 million to $50.8 million) was what we talked about for Thuringia,” Reinholz said.

GM is seeking to cut $1.2 billion in costs from its European business with a plan that has sparked outrage in Europe because of possible job cuts and plant closings. GM is currently in talks with labor representatives trying to hammer out a plan that would avoid factory closings and job cuts, but the plummeting demand for cars in Europe may force the Genera’s hand. The Detroit automaker says its European operations probably won’t return to profitability until 2011, after two years of projected losses.

GM recently announced that it would be making 26,000 job cuts outside the U.S., with the cuts being proportional to the performance of the regional markets – and Western Europe’s market is in shambles. Opel employees were outraged to find out that their jobs were in jeopardy.

“Opel makes a profit and we had a profit last year as well. Nobody on the outside knows that, they just always think that since the parent is falling apart that Opel is also bloody rubbish,” said Francisco Jimenez, an Opel worker.”

Source: Reuters, Automotive News

Do I hear a Dirge?:-(

DB9

02/19, 9:10 PM

posted by:

desertdriver

Is there going to be a high-performance division version of the new Camaro? Or was that already scrapped before this article? I really would like a new Camaro with a version of the ZR-1’s / CTS-V’s supercharged V8. GM might as well do it.

Put the brakes and engine from the CTS-V into the new Camaro and I’ll be happy. It’s that simple. :)

02/19, 9:31 PM

posted by:

atoms

it might be possible if the LS9 is available as a crate engine like the LS7

02/20, 12:33 AM

posted by:

llt21

I did not know GM had a performance division?? When did this happen. Maybe that is why they are cancelling their ” Performance Division” because no one knew they had one.

02/20, 5:26 AM

posted by:

fan

just logical… gm and performance dont go along…

02/20, 11:52 AM

posted by:

A4

WTF i better not be looking at a toyota appliance program clone in 5 years

02/24, 7:29 AM

posted by:

JohnnyBlazE

ROFLCOPTER @ NMOFGM peenarse.

 
 
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