Yesterday, GM’s first Chevrolet Cruze for the United States market, rolled off the assembly line in Lordstown, Ohio. The car first made its debut at the last LA Auto Show, and has been GM’s second best seller overseas after their Silverado pickup trucks.

The Cruze is GM’s most significant new model introduced into the United States since last year’s bankruptcy. With the forty miles per gallon fuel consumption on the highway, they hope to break into the fuel efficient market that they gave up to imports thirty years ago. With an emphasis on safety, like ten air bags and traction control as standard equipment, they hope to make the Cruze stand out from all other models.

While the Cruze costs a little more than most of its competitors, G.M. argues that it provides a better value with extras like air-conditioning and power locks that are basics in high end models but extra on most compacts. That approach helps the Cruze generate more revenue and allows the car to be built profitably at a union plant in the United States. (Most competing compact cars are built at nonunion plants or in other countries.)

To build the Cruze, G.M. added a third shift at the Lordstown plant after being downsized to a single shift during the height of the recession. The plant now has about 4,500 workers, including 800 who transferred from elsewhere at G.M.

As both GM and Nissan get ready to release their electric cars later this year, the electric car wars are starting to heat up already, resulting in benefits for the consumer.

GM announced the Chevrolet Volt would start at about $41,000, $8,000 more than the Nissan Leaf, but GM will also match the $349 per month lease deal that Nissan is offering on their car. Nissan fought back by announcing they would match GM’s battery warranty of eight years, 1000,000 miles.

Both vehicles will cost more than a comparable gas engine car, but the lease deals make them quite competitive. If you take into consideration the savings at the pump, the federal tax credit, and the additional tax breaks offered in some states, the new electric vehicles are in the budget of mainstream buyers.

Both Nissan and GM say the base models of their cars will come nicely equipped. Both have navigation, multiple air bags and premium audio systems standard. Options for both include backup monitoring cameras, leather seats in the Volt, and a solar-panel spoiler that generates electricity on the Leaf.

In 2006 when GM was faced with $10.5 billion in losses, they decided to sell their credit business, GMAC, so they could use the money to pay down some of its restructuring costs, shut assembly plants and buy out employees. Even though this deal helped GM restructure their company, the bailout in 2009 showed that GM had not learned from their mistakes.

GM announced Thursday, that they would be getting back into the credit business in a recent plan to buy AmeriCredit Corp., in an all cash transaction valued at about $3.5 billion. GM executives have said for months that they were missing sales opportunities due to lack of credit for lease deals and financing for sub prime buyers and that this is an opportunity to bring more people into the showrooms and help them with finance.

The two companies have had a financial relationship for years. AmeriCredit, which already works with about 4,000 GM dealers, now gets about one-third of its business from financing new and used GM vehicles. Overall, the auto financing company has about 800,000 customers and $9 billion worth of auto loans on its books.

The automaker says that its partner, Ally Financial — formerly known as GMAC Financial Services Inc., will continue to finance GM’s dealer inventory and make loans to buyers with good credit. GM says it is not considering a purchase of Ally’s auto financing unit in which GM sold controlling interest in 2006. The company eventually had to be bailed out by the U.S. government because of problems with its home mortgage loan unit.

Many feel that GM’s purchase of AmeriCredit is another multinational corporation finding loopholes to exploit, and that the credit practices that collapsed the sub prime housing market was actually started in the auto finance credit business. The recent Financial Overhaul bill that was just passed by Congress will not be of any help either, since automakers were exempt from it.

The Congress led arbitration hearings for almost 2,800 GM and Chrysler dealerships that were to be closed last year will soon come to an end. Since the hearings began, many of the cases have been resolved outside of arbitration. Some dealerships dropped out of the process on their own, others decided to start selling other brands, and some could still face months of litigation in state courts. While GM agreed that it would restore more than 660 dealerships and Chrysler about 80, the actual numbers will not be known until the arbitration is complete.

In 2008 GM recalled vehicles for an overheating windshield washer heater. A fuse was installed as a rectification, however, new reports of problems with the heater overheating continue to exist. GM will be recalling these vehicles again, and will permanently disable and remove the heated washer fluid module. Below is a list of the vehicles recalled:

    2006-2009

  • Buick Lucerne
  • Cadillac DTS
  • Hummer H2
    2008-2009

  • Buick Enclave
  • Cadillac CTS
    2007-2009

  • Cadillac Escalade
  • Cadillac Escalade ESV
  • Cadillac Escalade EXT
  • Chevrolet Avalanche
  • Chevrolet Silverado
  • Chevrolet Suburban
  • Chevrolet Tahoe
  • GMC Acadia
  • GMC Sierra
  • GMC Yukon
  • GMC Yukon XL
  • Saturn Outlook
    2009
    Chevrolet Traverse

Owners may contact Buick at 1-866-608-8080, Cadillac at 1-866-982-2339, Chevrolet at 1-800-630-2438, Saturn at 1-800-972-8876, GMC at 1-866-996-9463 and Hummer at 1-800-732-5493 or at the owner center at www.gmownercenter.com.

It seems that lately there has been much talk about the electric car. The automobile companies have been investing large amounts of money into electric cars with the hopes of becoming the leaders in the industry. The installation of more charging stations has not only made it more convenient to charge an electric car, but the installation of solar charging stations has made the drain on the power infrastructure less of a problem.

Still, the hydrogen car lurks in the background. Tucked away on the Torrance campus behind a security guard and a locked gate, a system designed to power Honda’s limited-production FCX Clarity sedan and other hydrogen fuel-cell vehicles uses solar panels to power a machine the size of a mini-refrigerator. This system converts water into hydrogen and oxygen gases and then pumpes the hydrogen directly into the car. No fossil fuels, no pollution, no additional strain on the power grid — and all done at home. It’s called a residential hydrogen refueler, and only one currently exists. According to statements from automakers like Honda, General Motors, Toyota, and Mercedes they hope to begin selling hydrogen-powered production cars to consumers as early as 2015.

Other hydrogen fuel-cell cars, only available by lease, exist. Made by GM, Toyota and Mercedes, most of the lessees are in “station clusters,” specific geographic areas that have hydrogen fueling stations. It’s the scarcity of these hydrogen stations that’s seen as one of the biggest barriers to mass adoption of fuel-cell cars.

The installation of these residential hydrogen refulers would solve this problem, but at what cost? Honda won’t say, but it’s a promising technology that advances the trend toward consumers detaching from a fossil-fuel economy and becoming more self-sufficient. It’s a future in which American homes are less reliant on a large-scale infrastructure — power grids, and water districts — and provide at least some of the solutions themselves via solar panels, gray-water systems, rainwater harvesting and home-based car-refueling technology.

GM stocks could be publicly offered as early as October of this year according to the government treasury department. GM said it may sell shares in late 2010 or early 2011, but the timing will be determined by the financial markets and the overall health of the auto industry. This much anticipated stock sale, is expected to be among the largest initial public offerings in U.S. history. The stock offering is a key part of GM’s recovery as it emerges from a government led bankruptcy last year.

“GM must determine that it is, in all relevant respects, ready to become a public company. For those reasons, it is critical that the process of preparing for a potential IPO be managed by GM,” the treasury department said. To pay off its shareholders the stock market would have to value GM at more than $70 billion. That would be nearly double Ford Motor Co.’s market, but far less than the total value of Toyota’s shares.

In one of the biggest recalls this year, GM will be recalling almost 1.5 million vehicles for the windshield washer heating mechanism. The system was recalled two years ago due to a short circuit on the circuit board that could overheat the control-circuit ground wire. Dealers at the time installed an in-line fuse in the heated washer module wiring, but there were still reports of overheating incidents, including five fires. GM will remove the problematic device completely and pay the vehicles’ owners $100 because the company that makes the new technology went bankrupt and there is no way to repair it. The vehicles affected are:

  • 2006-09 Buick Lucerne
  • 2008-09 Buick Enclave
  • 2008-09 Cadillac CTS
  • 2006-09 Cadillac DTS
  • 2007-09 Cadillac Escalade
  • 2007-09 Cadillac Escalade ESV
  • 2007-09 Cadillac Escalade EXT
  • 2007-09 Chevrolet Avalanche
  • 2007-09 Chevrolet Silverado
  • 2007-09 Chevrolet Suburban
  • 2007-09 Chevrolet Tahoe
  • 2009 Chevrolet Traverse
  • 2007-09 GMC Acadia
  • 2007-09 GMC Sierra
  • 2007-09 GMC Yukon
  • 2007-09 GMC Yukon XL
  • 2006-09 Hummer H2
  • 2007-09 Saturn Outlook

GM said customers would begin receiving recall letters this month, but they could contact their dealers now and make an appointment to have the heated washer system removed.