Good New Comes in 3s For General Motors

Good News Comes in 3s for General Motors
Fewer Employees - Higher Stock - New Hybrid

After what seemed like unrelenting bad news, GM has received some good news and good press lately.

First, GM's restructuring plan is ahead of schedule, with about 30,000 employees so far electing to take the early retirement buyout.

Second, Wall Street took the buyout information as a positive sign, and GM stock has rallied to about $26.50. It started the year under $19.00.

Third, GM released availability information about the Saturn Vue Greenline SUV. The Greenline is a so-called "mild" hybrid that relies on a belt-starter-alternator to allow the car to shut down the vehicle while stopped at a redlight. This system has the advantage of easy integration into existing vehicle designs, and without large battery packs, it is much cheaper than the systems used by Toyota and Honda. As a trade-off, it does not result in as much of a fuel efficiency gain. Still, the Greenline Vue's projected EPA MPG ratings are 27 city and 32 highway. That's in the same ballpark as the more expensive Toyota Highlander hybrid. The Vue Greenline is slated for availability "later this summer" at a starting price of $22,995, about $4,000 less than the Highlander.


This same powertrain is slated to become available in the Chevrolet Malibu and the Saturn Aura, but there have been no release dates set for the release of these models. At about 3200 lbs, the Vue weighs about the same as the Chevrolet Malibu, but it is not as aerodynamic. I would expect that a hybrid Malibu would deliver about 30/35 MPG.

Good news for GM

2007 Saturn Vue Greenline