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Camaro Goes Hybrid, As GM Axes Rear-Drive Impala, LaCrosse?

Camaro Goes Hybrid, As GM Axes Rear-Drive Impala, LaCrosse?

By Marty Padgett's avatar Marty PadgettMarty Padgett February 4th, 2008

Article ImageEnlarge Photo


General Motors has been forced to rework the investment case for the Chevrolet Camaro in the wake of new fuel-economy rules adopted this past December.

The Camaro will still be built, but higher-end V-8 versions likely will be priced higher than expected. As for other planned GM rear-drivers--a new Chevrolet Impala, Buick LaCrosse and the replacement for the Pontiac G8 due this spring--all have been dropped along with a new V-8 engine GM was contemplating building.

"You can't kill something that was never approved," said one GM official, who asked for anonymity but who confirmed the rear-wheel-drive projects are now dead.

Stew Low, a spokesman for GM of Canada, said the Camaro project is safe and is moving forward. The GM of Canada plant in Oshawa, Ontario outside of Toronto should be ready to build the first Camaro late this year, Low said.

Buzz Hargrove, president of the Canadian Auto Workers union, said that GM is spending $2.5 billion in Oshawa - including $435 million from the Ontario and Canadian federal governments.

“We anticipated that would be followed by other rear-wheel-drive vehicles, but the money they spent on the plant makes it a flex plant, so you can build both front-drive and rear-wheel-drive in the facility,'' Hargrove told reporters in Canada.

Only a proposal for new ultra-luxury rear-wheel-drive Cadillac seems to still have a chance of making it through GM's product development process and into production. Even that project, though, may well depend on how the Environmental Protection Agency writes the rules enforcing the new fuel-economy standards.

The death of the other rear-drive GM vehicles also has implications for the final pricing of the Camaro when it goes on sale next year.

Last year, GM vice chairman Robert Lutz had told TheCarConnection.com that the rear-wheel-drive platform developed for the Camaro would support other vehicles as part of GM's effort to make the project financially manageable. Spinning more vehicles from one platform spreads the costs around and is the most efficient and effective way for GM to use its available capital, Lutz has said.

As part of global product strategy GM plans to use fewer but more flexible platforms that would accommodate a wider range of vehicles and vehicle designs. Specifically, the new Camaro platform could be used for other rear-drive vehicles, Lutz said he said before the fuel-economy debate had heated up in Congress.

Part of the reason for the delay in moving forward with the Camaro project revolved around extending the utility of the fundamental architecture so it could serve as the platform for other vehicles as well, he said.

The new fuel-economy rules, however, have basically forced GM to reconsider its extensive plans for rear-wheel-drive vehicles. Rear-wheel-drive trucks and SUVs are safe for now because the new federal rules will allow some wiggle room for trucks. GM, though, is not in a position to absorb the roughly 1-mpg fuel-economy penalty that comes with building rear-wheel-drive passenger cars, GM insiders said in the wake of the North American International Auto Show in Detroit.

However, GM's decision to scrap the other rear-drive models is putting an enormous cost burden on the new Camaro.

GM officials are saying they should be able to recover some of the investment costs in the new rear-wheel-drive platform by selling the vehicles in places such as Australia, the Middle East and China. Australia, however, has a new government that takes global warming very seriously. China is imposing new fuel-economy standards that are as tough as those found in the United States and one of the largest vehicle markets in the Middle East, Iran, is off limits to American car companies.

Nevertheless, GM desperately wants to price the new Camaro competitively against vehicles like the new Dodge Challenger and particularly the Ford Mustang, which pretty much inherited the segment after GM withdrew the Camaro earlier in the decade.

With a new generation of rear-wheel-drive vehicles consigned to the never-built file somewhere in the company's engineering office, GM now is working on a plan B for Camaro.

GM chairman Richard Wagoner has already confirmed a V-6 engine will be part of the Camaro package.

While the concept Camaro has come with V-8 engine, a V-6 would serve as basic engine for the production Camaro and would help keep prices competitive.

Meanwhile, Tom Stephens, the head of GM's Powertrain Group, told reporters recently that turbocharging can help boost both fuel economy and horsepower.

The V-8 version of the Camaro is very likely carry a substantial premium and GM is thought to have assigned a team of engineers to work out how to apply its new dual-mode hybrid system for an even more expensive version of the Camaro.--By Joseph Szczesny Enlarge Photo General Motors has been forced to rework the investment case for the Chevrolet Camaro in the wake of new fuel-economy rules adopted this past December. The Camaro will still be built, but higher-end V-8 versions likely will be priced higher than expected. As for other planned GM rear-drivers--a new Chevrolet Impala, Buick LaCrosse and the replacement for the Pontiac G8 due this spring--all have been dropped along with a new V-8 engine GM was contemplating building. "You can't kill something that was never approved," said one GM official, who asked for anonymity but who confirmed the rear-wheel-drive projects are now dead. Stew Low, a spokesman for GM of Canada, said the Camaro project is safe and is moving forward. The GM of Canada plant in Oshawa, Ontario outside of Toronto should be ready to build the first Camaro late this year, Low said. Buzz Hargrove, president of the Canadian Auto Workers union, said that GM is spending $2.5 billion in Oshawa - including $435 million from the Ontario and Canadian federal governments. “We anticipated that would be followed by other rear-wheel-drive vehicles, but the money they spent on the plant makes it a flex plant, so you can build both front-drive and rear-wheel-drive in the facility,'' Hargrove told reporters in Canada. Only a proposal for new ultra-luxury rear-wheel-drive Cadillac seems to still have a chance of making it through GM's product development process and into production. Even that project, though, may well depend on how the Environmental Protection Agency writes the rules enforcing the new fuel-economy standards. The death of the other rear-drive GM vehicles also has implications for the final pricing of the Camaro when it goes on sale next year. Last year, GM vice chairman Robert Lutz had told TheCarConnection.com that the rear-wheel-drive platform developed for the Camaro would support other vehicles as part of GM's effort to make the project financially manageable. Spinning more vehicles from one platform spreads the costs around and is the most efficient and effective way for GM to use its available capital, Lutz has said. As part of global product strategy GM plans to use fewer but more flexible platforms that would accommodate a wider range of vehicles and vehicle designs. Specifically, the new Camaro platform could be used for other rear-drive vehicles, Lutz said he said before the fuel-economy debate had heated up in Congress. Part of the reason for the delay in moving forward with the Camaro project revolved around extending the utility of the fundamental architecture so it could serve as the platform for other vehicles as well, he said. The new fuel-economy rules, however, have basically forced GM to reconsider its extensive plans for rear-wheel-drive vehicles. Rear-wheel-drive trucks and SUVs are safe for now because the new federal rules will allow some wiggle room for trucks. GM, though, is not in a position to absorb the roughly 1-mpg fuel-economy penalty that comes with building rear-wheel-drive passenger cars, GM insiders said in the wake of the North American International Auto Show in Detroit. However, GM's decision to scrap the other rear-drive models is putting an enormous cost burden on the new Camaro. GM officials are saying they should be able to recover some of the investment costs in the new rear-wheel-drive platform by selling the vehicles in places such as Australia, the Middle East and China. Australia, however, has a new government that takes global warming very seriously. China is imposing new fuel-economy standards that are as tough as those found in the United States and one of the largest vehicle markets in the Middle East, Iran, is off limits to American car companies. Nevertheless, GM desperately wants to price the new Camaro competitively against vehicles like the new Dodge Challenger and particularly the Ford Mustang, which pretty much inherited the segment after GM withdrew the Camaro earlier in the decade. With a new generation of rear-wheel-drive vehicles consigned to the never-built file somewhere in the company's engineering office, GM now is working on a plan B for Camaro. GM chairman Richard Wagoner has already confirmed a V-6 engine will be part of the Camaro package. While the concept Camaro has come with V-8 engine, a V-6 would serve as basic engine for the production Camaro and would help keep prices competitive. Meanwhile, Tom Stephens, the head of GM's Powertrain Group, told reporters recently that turbocharging can help boost both fuel economy and horsepower. The V-8 version of the Camaro is very likely carry a substantial premium and GM is thought to have assigned a team of engineers to work out how to apply its new dual-mode hybrid system for an even more expensive version of the Camaro.--By Joseph Szczesny

Tags: Industry, Shoppers, General Motors

Posted in: 2008, 2009, 2010, Buick, Chevrolet, Hybrid, Camaro



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Responses (35 total)

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  1. By  Franklin Miller #1, Posted: 2/4/2008

    Customer to GM - Robert Lutz: Build the rear-wheel drive Impala, La Crosse, Cadillacs, and any other rear wheel drive cars that you had planned before the new CAFE standards. Also continue with your V8 engine development. Make them hybrids if you have to, but build them. This is what we, the public, wants. Plus, you need to spread the cost of these cars, so you need more than one or two rear wheel drive zeta platform cars.

  2. By Bob #2, Posted: 2/4/2008

    Build the Cars. If the Camaro Z28 or SS gets to Corvette Prices, it will kill the project. Does anyone remember Ford's T-Bird. America wants the Camaro and Impala. I will never drive an Aveo etc. CAFE will not fix the world like are government believes.

  3. By ed hill #3, Posted: 2/4/2008

    This does not sound good for the z28 and SSmodels. As to be priced with the Challenger just over 40k thats way to much. Building more trucks and suv's is not the answer i wont buy another gas hog truck or suv. Or a hybrid Camaro.

  4. By Jordan Mascarenhas #4, Posted: 2/4/2008

    American Auto Consumer to GM:-Do not run away and hide from new legislation. You may as well go ahead with what has always worked for you-( the iconic American V-8). Simply add variable valve and intake timing and cylinder de-activation capability to them. Additionally, make sure that both manual and automatic transmissions are 6-speed. Doing so will both, justify a higher price AND lower production numbers. While numbers will be low, profit margins will be high enough to justify production.

  5. By Tom Eidsmore #5, Posted: 2/4/2008

    Every car that GM builds that is Impala sized or bigger needs to be rear wheel drive. If this means that a loaded V-8 Lacrosse will be $40K+ so be it, you will still be better off! Every auto journalist in the world will continue to recommend Honda's and Acura's to their readers until GM's competition wows them with RWD steering feel and attitude.

  6. By Jerry Walker #6, Posted: 2/4/2008

    I haven't purchased A GM product since 85 pontiac STE, the 2006 Lucerne does not co count because I only kept it about A month,probably will not ever own another front wheel drive,not that you people will pay attention to thi note but anyway I finally got it said. Jerry Walker, Moab utah

  7. By Bill McElwee #7, Posted: 2/5/2008

    Well as much as I was rooting for the new Camaro to be a sucess it now appears that it won't. The whole point of the Ford Mustang is that for a reasonable price (about $25 grand) you get a V-8 powered rear wheel drive pony car. While I am sure that the V-8 Camaro models will probably pack in excess of 400 horsepower, there's no way that Chevy will sell very many of them. Not when they will probably cost close to 40 grand. Considering that for $25,000 I can buy a brand new Mustang, spend about $2,000 to $4,000 more for simple bolt on's, and have a car that is pushing 400 + horses for a hell of a lot less cash. I really thought GM was starting to wake up, but I guess I was wrong.

  8. By Rosemeyer #8, Posted: 2/5/2008

    * I have been waiting to replace my Camaro SS with another one & it will be a Decade IF and WHEN it comes.

    I will die before I can drive my new Camaro SS cabrio convertible. Talk about draging your feet. Whatever they come out with, the interior will be Craptastic, & it will not be worth the wait.

    Any supply of a nice Cam SS conv. with the 6.2 will have a FAT dealer markup large enough to be a Solar Eclipse!

    The Mustang will already be on their x Gen model.

    GM you suck (sorry, is that rude? Is it not also rude to keep your most loyal fans waiting for a Decade? Exactly.) Yes, it is personal.

  9. By Leroy Tooter #9, Posted: 2/5/2008

    Finally, GM is coming to its senses! FWD is fine for the Impala. All this RWD hoopla is nothing more than a fad. FWD is just as good if not better and a whole lot cheaper to produce and operate. Not to mention the fact that it is much, much better in the snowy climbs of North America. Hooray, I say, for GM!

  10. By Michael D. #10, Posted: 2/5/2008

    These reports keep flip-flopping and contradiction themselves. This does not sound like "Maximum" Bob Lutz to humble and back down and go against all his values. There's nothing official yet, but, it was stated that unfortunately the next Impala will still be front-drive, but it doesn't sound like it'll differentiate much against the New Malibu.

    It looks like Cadillac is sticking to it's guns here.

    But with Buick: the next LaCrosse is established to be going on an Epsilon II chassis, the next-generation Epsilon. What about the next-generation Lucerne?! I hear two reports with the Lucerne: one, it'll be succeeded with a RWD Zeta, two, it'll be succeeded by a long-wheelbase Epsilon II and a Chinese Park Avenue will be imported as a Buick Flagship.

    Also, what about the reports that went around regarding the results of the new contract following the strike? Not sure which plant is producing which models, but one was set to produce two Zeta lines (other than the Camaro) and another was to produce a larger front drive line (perhaps the next Impala).

    I wish they wouldn't flop-flop, pull back, or dangle the carrot and disappoint. Also, look at the imports, they don't look to be backing down, they're growing and moving upward. Even Hyundai introduces a RWD Genesis with a 375hp V8! Chrysler has their RWD-bias LX line. Ford announces development is a RWD chassis, as well. Why would GM humble among all this?!

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