Cadillac Converj plug-in hybrid gets green light

When it comes to talk about GM’s future cars, the Chevrolet Volt gets all the attention. But the Volt isn’t the only extended-range electric vehicle General Motors has on its drawing boards, according to an article this week by the Detroit News.

According to the report, General Motors’s board decided to build the Cadillac Converj, a luxury coupe derived from the Volt. The company showed a concept of the Converj at last year’s Detroit Auto Show. Like the Volt, the Cadillac Converj will have batteries capable of driving 40 miles that will be charged from an electric socket. After that, small-displacement, four-cylinder gas engine will start to enable longer trips. It will undoubtedly offer luxury features unavailable in the Volt and sell at a higher price, allowing GM to accelerate the return on its investment in the Volt. The Volt is expected to sell for $40,000 and is eligible for a $7,500 federal tax rebate. The Converj could be expected to sell for significantly more. There was no target date announced.

A third version of the Volt, the Opel Ampera, is expected to be sold in Europe, starting in 2011.

—Eric Evarts 

2010 Cadillac CTS – Flash-to-pass, part 3

Sometimes we wonder why is it so hard for some companies to do something that everybody else does as a matter of course. Nearly two years ago we took GM to task for a flaw on the very nice 2008 Cadillac CTS. That car lacked a flash-to-pass headlight feature. GM promised to correct that, and they have--partially.
 
The omission affected CTS versions with bi-xenon headlights which come on the Premium trim line.
 
We just purchased a new CTS sedan with the direct-injection 3.6-liter V6, Premium package and FE2 suspension.
 
Indeed, GM has not only added the flash-to-pass feature but notes triumphantly that it didn’t even cost them any money. The feature was there all along but it was disabled, GM explains, for bulb-longevity reasons. Frankly, the longevity argument doesn’t cut much ice. Xenon lights already have a much longer life expectation than halogens. But here’s the real caveat: The CTS’s new flash-to–pass is momentary. The high beam duration is merely one second regardless of how long you squeeze the left stalk. If you hold it with the intention of maintaining high beams for several seconds, you still get only one single flash that goes off after the one second, which is unlike almost any other car. You might have to blip the stalk multiple times to get an inattentive driver’s attention.
 
Examining the headlight unit reveals that there is no dedicated bulb for the flash-to-pass feature, which other bi-xenon systems employ. The CTS instead only briefly triggers the regular high beam. That’s a creative (read: cheap) way to get off the hook. We’ll take it for now, but it’s no free pass. Hopefully, it won’t take another two years to get a continuous flash-to-pass.

See the related posts:
The stalk that broke the Cadillac CTS' back
No flash-to-pass for Cadillac CTS, part 2
 
—Gabe Shenhar

OnStar will aid electric-car rollout, GM says

Telematics systems can give unique benefits and insights to plug-in cars. In building a fleet of prototype Chevrolet Volts, General Motors has tapped into its OnStar system to monitor batteries, driving data, and charge cycles, as well as update software on the fly. The company has also been studying how drivers use their conventional cars equipped with OnStar in the hopes of gaining insights into their driving and refueling habits.
 
So far, they have made some interesting findings: Looking at ordinary cars in the markets where GM plans to sell the car, OnStar determined that if Chevrolet Volts were used in those same driving cycles, 35 percent of them could run all day in electric mode. Others would have to use gasoline some of the time. (The Volt is advertised to have batteries big enough to drive the car 40 miles without the engine starting.) This differs from Census Bureau numbers that show 78 percent of Americans drive 40 miles a day or less. The government numbers, however, come from a 2002 survey of household travel, and it wasn’t focused on GM drivers.
 
A key lesson here is the importance of adding so-called opportunity charging stations at workers’ office buildings to raise the number of Volts able to drive all day on electric power.
 
Once plug-in vehicles roll out to consumers, OnStar could help for example by providing a remote communication link to the car to tell it when to recharge or avoid recharging at peak energy loads, for example, or remotely turn on the heat or air conditioning to make the interior comfortable using grid power, rather than the on-board battery or engine.
 
This week at The Business of Plugging In conference in Detroit, we had a chance to tour GM’s OnStar Command Center, a high-tech space with monitors along one wall showing nationwide reports of car lockout reports, people asking for directions, and cars in accidents.
 
In another OnStar development last week, for the first time, police disabled a vehicle that had been carjacked in California. The service has been available for about a year in certain 2009 GM vehicles equipped with OnStar. In this case, the driver called OnStar, in addition to the police, after his car was stolen by a man with a shotgun. After verifying the situation and coordinating with police, who were following the car and verified the situation was safe, OnStar disabled the throttle so the engine returned to idle. The car was recovered 16 minutes after it was stolen.
 
Getting the most from electrified powertrains requires smart electronics management, and telematics may play a key role in helping drivers and even communities manage their power.

—Eric Evarts

Learn about driving green in the Consumer Reports special fuel economy section.

General Motors launches 60-day satisfaction guarantee

General Motors is battling an image problem. As seen in the results from our recent nationwide Auto Pulse Survey, new car buyers are less likely to consider a GM product now than a year ago, with the chief reasons being the company’s economic condition (58 percent) and unappealing product offerings (49 percent). GM hopes to change perceptions with its “May the best car win” marketing effort that provides a 60-day satisfaction guarantee on 2009 and 2010 model-year vehicles from Buick, Cadillac, Chevrolet, and GMC. (Read: "Survey: Car buyers look to buy American, sound off on concerns.")
 
Starting today and running through November 30th at participating dealers, the program allows consumers to return a purchased vehicle for a full purchase-price refund, including sales tax, between the 31st and 60th days. GM expects that over the initial 30 days, most customers will be satisfied and hold on to their purchase. Those customers who are confident in their vehicle choice could elect to not participate in the program and receive a $500 cash incentive instead.
 
GM ran a similar program before in the 1990s with both Saturn and Vauxhall, its British division. The corporation expects just 2-3 percent of the vehicles will be returned. Those that do make their way back to dealership lots will become the epitome of nearly-new used cars.
 
May the best car win
GM is looking to make a bold statement, though this one may be over reaching. Consumer Reports recommends just eight Buick, Cadillac, Chevrolet, and GMC products out of 45. (See our list of recommended cars.) While the most recent GM vehicles have generally performed well in our tests, and several we haven’t completed testing show promise, not one tops its class for overall test score. However, the Chevrolet Avalanche was named a 2009 Top Pick, edging out the higher-scoring Honda Ridgeline, for its combination of comfort, versatility, and rugged capability.
 
In many cases, the new GM vehicles may be decidedly better than the older model being traded-in, offering more performance, fuel economy, and safety features. However, the only way to truly know if they are best for you is to do your research, including conducting your own test drives in prime competitors. Worst case, the time spent will reaffirm your decision. (Read: "What’s coming from the new Detroit.")
  
The small print
There doesn’t seem to be a real “gotcha” with this program, though there are some details worth reading before visiting the dealer. A few items to note:
 

• The program applies only to retail customers, not to business, corporate, or fleet sales.
• Lease vehicles are not eligible.
• To be eligible for return, the vehicle must have less than 4,000 mile and less than $200 in damage.
• The first payment must be made.
• The vehicle must not have been in an accident.
• The title, insurance, and registrations costs will not be reimbursed.
• The original trade-in will not be returned.

Bottom line
Despite the name, the 60-day satisfaction guarantee program looks to give consumers added incentive to buy a GM vehicle. With our recent Auto Pulse Survey showing that 81 percent of new car shoppers looking to “buy American,” this program may lure more customers away from Chrysler and Ford dealerships.
 
But as always, do your research. ConsumerReports.org has a quick-and-easy new car selector that allows online subscribers to quickly sort and filter ratings and data to identify the cars that best meet your needs and budget. We also have eight special areas dedicated to each car type, such as sedans and SUVs, with targeted buying advice and vehicle recommendations.

And finally, as with any incentive plan, don’t let the excitement overshadow the need to negotiate a good purchase price as close to the Bottom Line Price as possible, accounting for dealer holdback, customer rebates, and hidden dealer incentives.

BTW: I wonder how many Corvettes will be driven for a thrilling month, then returned...

—Jeff Bartlett

GM reveals future car road map

General Motors threw itself a party this week, hosting media and consumers in an event to showcase upcoming models and technology. (Consumer Reports did not attend.) Center stage was the 2011 Chevrolet Volt and the bold announcement that it would achieve 230 mpg in the city, based on an upcoming EPA protocol. (Read: “2011 Chevrolet Volt: Fuel economy results may vary.”) GM officials also reaffirmed various brand positioning strategies: Buick will target Lexus, and Cadillac will compete with BMW. Sneak peeks revealed the future products designed for just that purpose.

In the short term, GM’s 2010 model-year changes show a focus on fuel economy and safety. 

Highlights from the GM road map:

Chevrolet alone is introducing 10 new models by end of 2011, including the 2011 Aveo, Cruze, and Volt. The Spark hatchback becomes the entry-level Chevrolet for 2012. The same year, the Camaro line gets a convertible. The C7 Corvette is scheduled as a 2013 model. The Chevy Orlando, a mini minivan, based on the Cruze is also in the plan.

Buick and GMC are adding 10 new entries, including a Buick plug-in hybrid small SUV, based on the Saturn Vue and Regal sedan in 2011. A freshened Enclave will follow the next year. Changes to the large body-on-frame trucks from the various brands are yet to be determined as the company wrestles with upcoming fuel economy standards. Rest assured, full-sized pickups will remain in the portfolio, but the SUV designs and platforms are subject to review.

Cadillac is introducing five new models through 2011. Most notable, Cadillac is taking aim at the BMW 3 Series with a sub-CTS model called ATS that will be offered in rear- and all-wheel drive. A hybrid version is possible.

The Cadillac XTS sedan will replace the DTS and STS for 2012, based on a global platform with front- and all-wheel drive. A premium coupe has been rumored, inspired by the striking, long-hooded Sixteen concept.

Clearly, General Motors has much up its proverbial sleeve. How the products measure up remains to be seen. Many recent GM models have performed well in Consumer Reports tests, though reliability continues to be mixed.

—Jeff Bartlett

GM leases select Buick, Cadillac, Chevrolet, GMC models

After abandoning leases when the economy swooned last year, General Motors is dipping its toes back in the water.

In a pilot program expected to run through August, the company will offer leases through U.S. Bank on the 2009 Cadillac CTS, and Chevrolet Malibu and Traverse, as well as on the 2010 Buick Enclave and LaCrosse, Cadillac SRX, Chevrolet Equinox, and GMC Acadia. Except for the SRX, the leases will only be available in five states: Connecticut, Michigan, New Jersey, New York, and Ohio. The SRX lease will be available nationwide. (Links point to the model overview pages, available to online subscribers.)

Consumer Reports rates most of these models highly, including the Buick Enclave, Cadillac CTS, Chevrolet Malibu and Traverse, and GMC Acadia. Reliability, however, has been mixed: Only the Malibu has been rated reliable enough with our subscribers to earn our Recommendation. New models from GM, including the Equinox, LaCrosse, and SRX, look promising, but we have not yet had a chance to test them, and their reliability record has not yet been established.

We welcome expanded financing choices for consumers who are interested in buying these vehicles, but caution that leasing is more expensive for most owners in the long run than purchasing a new vehicle with cash or financing.

Learn more about leasing from our car buying advice special section.

—Eric Evarts

Buick to rival Lexus; Cadillac takes on BMW – Will it work?

Some auto-industry experts, as well as some staff members here, have openly questioned the need for General Motors to have even four brands remaining in its lineup. After decades of watered-down, rebadged products, it’s hard to see what defines a Buick or GMC and makes them essential in the brand portfolio. Plus, why does GM need two upscale car divisions positioned above Chevrolet?

At one time, GM expected buyers to progress from Chevrolets to Buicks and Cadillacs, with stops in Pontiacs and Oldsmobiles along the way. But for myriad factors, the market no longer works like that. Today, most automakers succeed with just two or three channels divided along mainstream and luxury models.

It’s pretty clear that GM argued, and the government agreed, to keep Buick and GMC because they make money. But do they make sense in the long run?

GM executives have recently made it clear what Buick and Cadillac will stand for and what will set them apart.

In a Web chat on Monday, GM product and now marketing czar Bob Lutz said, “Cadillac needs to display the characteristics to permit [it] to rival the German luxury brands. It will be Buick's task to take on Lexus.”

The next day, GM VP Global Design Ed Welburn described GMC’s design mission as “industrial precision.” We’re not sure why Chevrolets shouldn’t benefit from looking precisely manufactured, but maybe that’s just us. At least, turning a Chevrolet into a GMC doesn’t cost a lot of money. As to Buick, it may have lost its luster stateside, but it’s a hit in the growing Chinese market.

What is clear is that BMW and Lexus vehicles cater to different groups of upscale buyers, though there is some market position  overlap. With the CTS, Cadillac has shown it can be competitive with BMWs. And Buick’s upcoming LaCrosse looks promising. But the question remains: can a single company go after the two sides of the same segment, without competing with itself? Likewise, is there enough to distinguish Chevrolet from GMC?

Post your thoughts in the comments section below.

—Eric Evarts

New GM to experiment with cars sales on eBay Motors

If you live in California, General Motors will have a new experimental program to allow buyers to purchase cars through an eBay auction. The company has signed an agreement with eBay, but few details are available.

The program will be run through California dealerships and include an option to buy the car at a fixed price.

This marks the latest manufacturer attempt to provide a way for consumers to buy cars directly off the Internet and avoid price haggling in the sales office. However, bidders may find dealers still try to sell extended warranties, fabric and paint protection, and VIN etching once at they arrive at the sales office to complete the paperwork. 

Previous efforts to allow consumers to buy cars directly through manufacturer or third-party Web sites were not successful. But dealers now have many years of experience selling used cars on eBay, so they may be more comfortable with this program. If the experiment is successful, GM hopes to make it available more widely, said GM CEO Fritz Henderson in a speech this morning.

Read: “What the post-bankruptcy GM means to you” and also: “Winning at eBay.”

—Eric Evarts

What the post-bankruptcy GM means to you

General Motors quickly emerged from its May 31st Chapter 11 filing this morning, benefiting from the Chrysler bankruptcy process before them and Auto Task Force drive to get the corporate giant back on its feet. The transition from old to new GM should be rather seamless for consumers, at least initially.

GM has culled four divisions from its portfolio and down the road it plans to significantly reduce its dealer body by not renewing franchise agreements. These 1,100 dealerships, representing about 18 percent of GM’s total dealers, will have until October 2010 to sell their remaining cars. The product line will drop from 48 to 34 nameplates in the process.

This Q&A addresses some common questions, and we will continue to provide additional insights and advice as General Motors and Chrysler both begin their new chapters. For more information, go to our Auto Crisis page. Also, learn how bankruptcy works.

Who owns the new GM?
Earning the nickname “Government Motors,” the American tax payers are the majority owner for the new company. GM ownership breaks down to:

• The United States government—a 60.8 percent stake
• A trust fund (VEBA) that provides medical benefits for United Auto Workers retirees—17.5 percent
• The governments of Canada and the province of Ontario—11.7 percent
• Bondholders of the old GM—10 percent.

What brands and models are available?
The new GM will include Buick, Cadillac, Chevrolet, and GMC brands. GM has stripped itself of Pontiac, Hummer, Saab, and Saturn. The latter three divisions are being sold to other companies, so those brands are expected to continue to be available in the United States. Future GM models include the Buick LaCrosse; Cadillac CTS coupe, CTS Sport Wagon and SRX; Chevrolet Cruze, Orlando, Spark, and Volt; and GMC Terrain.

Will I be able to get parts and service for my GM car?
GM dealers will continue to provide service, as before. Hummer, Saab, and Saturn dealers will be supported until the divisions are sold off. It is expected that most dealers will transfer their franchise agreements to the new owners, enabling them to continue without interruption. In emergency situations, most of these vehicles can be serviced at any GM dealer. Perhaps the greatest consumer impact will be the significant reduction in dealerships, making car maintenance less convenient.

Keep in mind that you don't have to take your car to a dealership for servicing, even if it’s under warranty. A good independent shop, especially one that specializes in your car’s brand, should be able to handle routine maintenance and many repairs. Moreover, independent repair shops are often less expensive than dealerships and, according to our Annual Auto Survey, generally provide a higher level of satisfaction. You will need to go to a dealership, however, for warranty and recall work.

Will GM still back my warranty?
Yes, GM will continue to support its vehicles’ warranties. Responsibility for warranties for Hummer, Saab, and Saturn will eventually transfer to the new owners.

What if I want to sell my GM car?
Models from brands that are being phased out or sold will probably see a drop in value. But if the company re-establishes itself as a strong, stable automaker in the future, ongoing models could see a rebound in value. If you plan to keep the car for a long time, depreciation is less of a factor.

Should I buy a GM car now?
No reason not to buy a Buick, Cadillac, Chevrolet, or GMC vehicle. However, there are some considerations when choosing from a lame-duck GM brand. For instance, the future of Hummer, Saab, and Saturn is not yet carved in stone. Even when it is, it is unclear who will support current versions of those products, or for how long. Sales of these divisions are in process. Pontiac is being phased out, and finding long-term support for its products may be more difficult than with other brands.

That said, GM is offering some tempting sales incentives on many of its models, including ones that we recommend. And with slow auto sales and too much inventory, dealers are ready to negotiate. So, it’s likely that you could get a very good deal.

Several recent GM models have done well in our testing and are very competitive in their classes. Consumer Reports recommends the Buick Lucerne V8; Cadillac DTS; Chevrolet Avalanche, HHR, Malibu, and Silverado; and the GMC Sierra. The Cadillac CTS, and GM’s quartet of three-row, crossover SUVs (Buick Enclave, Chevrolet Traverse, GMC Acadia, and Saturn Outlook) all did well in our tests, but are not recommended due to below-average reliability in their first years. (Links in this paragraph go to model overview pages, where online subscribers can review ratings, pricing, reliability, and road tests.)

It’s important to remember that any deal is only as good as the vehicle you’re buying. As always, we recommend that you thoroughly research the performance, reliability, safety, owner cost, and owner satisfaction of any model you’re considering. Subscribers to ConsumerReports.org have access to our Ratings in all of those areas.

What if I have a claim against GM?
Under pressure from the government and consumer groups, GM has agreed to stand behind product liability claims for all GM cars and trucks that are filed after the company emerges from bankruptcy. However, hundreds of consumers with existing personal injury claims against GM will be left scrapping for the meager remains of the old GM.

To get answers to the most common questions and concerns about Chrysler’s and GM’s bankruptcy and reinvention, check out our Auto Crisis hub.

Judge approves "old" GM bankruptcy sale to "new" GM

Late yesterday, U.S. Bankruptcy Court Judge Robert Gerber approved the sale of General Motors to a new corporation, which will allow the company to come out of bankruptcy as early as Thursday.

The new company will be owned by:

• The United States government—a 60.8 percent stake
• A trust fund (VEBA) that provides medical benefits for United Auto Workers retirees—17.5 percent
• The governments of Canada and the province of Ontario—11.7 percent
• Bondholders of the old GM—10 percent.

Objectors, who included people ranging from consumer groups to bondholders, failed to present a viable alternative to the bankruptcy, the judge said. He allowed a four day stay of the sale until Thursday afternoon for appeals. Friday, July 10, is the last day the U.S. Department of the Treasury has agreed to extend any loans to the old GM.

The new GM will include Buick, Cadillac, Chevrolet, and GMC brands, with the automaker divesting itself of Hummer, Pontiac, Saab, and Saturn. It will also include some overseas operations, including those in China and Brazil. GM continues to work with potential buyers for its European operations.

The court-approved sale leaves behind hundreds of consumers who had personal-injury claims against GM for alleged defective products. (Read: "New GM" will cover future product-liability claims, but not pending ones.")

For most consumers, however, we expect the transition to the new company to be relatively transparent. The company has said it will still back warranties on all existing cars. If you own a Saab or Saturn new ownership may bring changes at your dealership, as these brands transition under new ownership. Hummer may be sold to Chinese truck maker Tengzhong. Pontiac will be closed. Through these changes, it is expected that more dealerships will also close.

If you’re thinking of buying a GM car or truck, the company is offering great incentives right now. But it’s important to remember that any deal is only as good as the vehicle you’re buying. Consumer Reports recommends the Buick Lucerne V8, the Cadillac DTS, the Chevrolet Avalanche, HHR, Malibu, and Silverado, and the GMC Sierra.

So if you’re looking for a new American car, these models might be a good place to start.

Use our new car selector to compare models based on ratings, reliability, safety, cost, and the factors that matter most to you.

—Eric Evarts

Read "What does the GM bankruptcy mean to you?" To get more answers to the most common questions and concerns about GM’s bankruptcy, visit our Auto Crisis hub.