Re: GM shelves completed innovative diesel engine

Further evidence that GM has their heads in the sand and (IMO) probably shouldn't be bailed out. Article here.

Development of Cancelled GM Diesel Was Complete
March 12, 2009

By Bill Visnic

DETROIT - General Motors Corp. caused a stir when it confirmed yesterday that it is shelving an innovatively designed diesel engine that was earmarked to provide something of a fuel-efficiency revolution for its light-duty pickup trucks and possibly its full-size SUVs.

The Duramax 4.5-liter V8 diesel design "was complete," according to a GM spokesperson, who added that GM engineers "were doing the vehicle engineering development work associated with integrating the diesel into the vehicle." GM had billed the Duramax as a 2010 engine and was set to begin building the engine at a longstanding powertrain manufacturing site in Tonawanda, New York.

One source in the powertrain sector said the Duramax diesel's innovative design -- among other things, exhaust exits in the inside "valley" of the vee engine, rather than through conventional exhaust ports that empty into manifolds on the outside of each cylinder bank -- could present unique packaging challenges to adapt it for the engine bay of an existing pickup, such as the Chevrolet Silverado or GMC Sierra, or a truck-based SUV like the Chevrolet Tahoe or GMC Yukon.

Each of the Detroit automakers had been adamant that smaller diesel engines for its half-ton pickups and pickup-based SUVs could achieve the same efficiencies - and popularity - that have made diesels a mainstay of their medium-duty pickup lineups. But the industry's deepening financial crisis and a relatively recent inversion of the price relationship between diesel fuel and gasoline has cratered their enthusiasm for the strategy.

The promise from diesels has been as much as a 25-percent hike in fuel economy compared with current light pickups powered by gasoline V8s.
 
But from the onset, the proposed new light-truck diesels - Ford Motor Co. has an in-house design and Chrysler LLC had been working with longtime diesel supplier Cummins Inc. -  were saddled with a thorny business case in part because of the expensive exhaust after-treatment systems the engines need to comply with tougher new nationwide emissions standards. In the medium-duty pickup market, the diesel engine option typically adds $5,000 or more to the vehicle price, and those engines aren't required to use most of the pricey after-treatment components necessary for diesel-powered light-duty models.

The GM spokesperson said the company is open to joint-venture manufacturing possibilities for the 4.5-liter Duramax, saying GM remains optimistic that the unique diesel may yet see the light of day.

"We are willing to partner with a third party on the diesel as long as it is a win-win for us. We won't confirm any discussions (with potential JV partners)," the spokesperson said in an e-mail to AutoObserver.

"Bottom line, we want to build this diesel," the spokesperson said.

"This decision to indefinitely postpone the diesel was driven by a very tough economic climate for us as well as capital constraints. We recognize the enthusiasm for this diesel with our Chevy/GMC customers and how greatly disappointed they are with this news. The same is true within our powertrain engineering and manufacturing team and the entire company. We are optimistic that we will still be able to add it back into our portfolio."

Photo by GM

It is frustrating ... but realize that when a company is struggling to survive then they need to mothball things costing them money and focus on those items that make them money (as well as controling costs).

Rich

It is frustrating ... but realize that when a company is struggling to survive then they need to mothball things costing them money and focus on those items that make them money (as well as controling costs).

Let me guess, they've decided to focus on expanding the Hummer line.

SmokeStack

Let me guess, they've decide to focus on expanding the Hummer line.

my first thought exactly!

Just exactly which part of GM is making them money these days? Is the Volt making them money? Or are they going to do the same thing with the Volt, too? GM has a long history of saying they are coming out with cool stuff and then bailing at the last minute, which is exactly why they are where they are now. The government has given them money for their operating costs, but they need to do R&D too. Part of me thinks it would almost be better to shut the company down temporarily, use some government R&D money to re-tool and open back up when they have some products worth selling. Ok, in real life, that is probably not realistic. But it seems crazy to keep giving the company money just to cover its operating costs when it clearly doesn't have the long-term stamina for product development that would eventually lead to it being able to stand on its own.

"But the industry's deepening financial crisis and a relatively recent inversion of the price relationship between diesel fuel and gasoline has cratered their enthusiasm for the strategy."

Looks like reporter Bill Visnic didn't make it out of "trading 101."  The recent inversion in the price relationship between diesel fuel and gasoline should make these idiots be rushing to get this engine to market.  Now, not only is the diesel engine much more efficient than the gas counterpart, but the price of diesel is falling BENEATH that of gasoline.  A favorable inversion.  Wholesale rack prices for ULSD and 87 octane unleaded are quite close today in Spartanburg, SC.  Actually, when total state and federal taxes are taken into account, ULSD is a nickel cheaper!  Now, you're probably scratching your head right now, wondering why ULSD is still above unleaded at retail.  Completely due to retailers holding on to margins for as long as possible.  In the near future, though, ULSD will be less than 87 octane.  GM, you truly suck, and are very lucky that America has been so complacent regarding your offerings over the last decade.  The future will not be so kind. 

Interestingly the cost of developing a new engine is not the R&D, but the support cost on top of the manufacturing. Imagine having the number of dealerships that require the correct equipment and training in order to support a new engine ... let alone the new Volt platform! Its a huge expense that someone is going to have to deal with ... and at a time they are flirting with bankruptcy is just not realistic. Frankly I don't see how they can meet the Volt rollout plan as is ... I'd venture to say they'll delay the Volt by at least another year or do an EV1 and EV2 style rollout in California.

Well to be fair I don't think you can lay all the blame on GM. EPA IMO is mostly to blame by the fact they keep raising the emmision standards higher evertime some manufacture gets close to meeting requirements. Honda ring a bell?

To me it is pretty clear our gov wants no part of light weight diesels in the USA

It is frustrating to me when this happens. Diesel is our short term future when it comes to mpg. Yet our politicians can't see the forest through the trees and the enviromental lobby is just that, MENTAL!

GM is struggling and this engine could help them. 550 pounds of torgue in a full size half ton that gets 30 mpg! Not to mention if they tie this engine to an electric hybrid and we could potentially be looking at 39 mpg.

I have been demanding and calling/E-mailing my congressman for ten years to remove the extra taxation on Diesel. I even got into it with Wayne Allard who was so brainless about the subject. He just wanted to blame the enviromentalists and not even take it up. Brainless is the new priceless! 

Welcome to the site, Camper X. Good points all. I do agree that we're being stubborn about Diesels engine vehicles, just like we're being stubborn about the metric system and other things that make sense but have the misfortune to not be thought up by us.

GM's always been afraid of change.  That's why they reigned Saturn back in and killed what made it special and successful, instead of restructuring the rest of GM to be like it.

It's been existing on momentum and patriotism alone for 30 years or more.  I'm with Nate; let them go under if they won't restructure intelligently.

(BTW, it's "firehawk" back on...couldn't reclaim my name but I'm back. )

-Mike