GM Whacks High Performance Division

One of the best ways to sell cars, at least in the eyes of those who make them, is to offer select high performance models. Not many of these vehicles are sold, but they happen to raise the visibility of that particular model, perhaps encouraging sales across model lines.

High Performance Vehicles Operation

General MotorsGeneral Motors has long been about high performance with Chevrolet Corvette being the best example of what the automaker can do to make produce a powerful sports car. The company also operates a High Performance Vehicles Operation (HPVO) unit, one that takes rather ordinary cars and makes them extraordinary.

Among the vehicles that have benefited from GM performance prowess are the Pontiac G8 GXP, Cadillac CTS-V and the Chevrolet Cobalt SS. But, those cars will soon be history — at least the high performance models — as GM has closed down its HPVO unit.

Seeking To Recover, With Federal Assistance

This bit of news comes from the company’s recently submitted recovery plan report where the automaker outlined to the federal government the direction the company would be taking over the next several years. That report revealed that GM would abandon or sell off several brands, close factories, lay off workers and work extra diligently to bring the electric Chevy Volt and similar vehicles to market.

Though the new direction GM is taking may seem a bit stunning, high performance vehicles rarely provide the profits needed to sustain them. These types of vehicles cost a lot to make and the return on investment is non-existent. Thus, in its current state GM needs to take action to ensure that the products they have going forward provide a higher volume which means a higher return on their money.

The Corvette Goes It Alone

According to Automotive News, which broke the story, engineers who were working in HPVO have been reassigned. Although the Corvette has been part of HPVO, more than likely the iconic sports car will soldier on with its own dedicated group of engineers.

Current HPVO vehicles will likely finish out their lifecycles meaning that the CTS-V sedan will continue for a few years. Next year’s planned released of the CTS-V coupe is in question, however.

K&N Air Intakes-Buy One Now

Comments

  1. I hope to see the Volt go mainstream. It seems like a great car and I hope it will help our dependence on oil!

  2. Elvis you must just not get it… How is GM supposed to compete with a company like toyota, which is union-less, when they have unions crawling up their ass. Unions used to be very important to this country as Matt pointed out but now they’re just too much. And the unions are at fault because they wont restructure their contracts with GM. They might want to think about lowing those worker’s wages that they represent or they wont be representing anyone because there wont be a GM. If they want to wait until GM goes into bankruptcy so their contract with the union is basically null and void, fine, but the country’s taking the hit.

  3. “CTS-V coupe is in question” Please say it’s not so! I am a 2 door Cadillac fan. I have a 2000 ETC in the garage that I love but was waiting for the CTS coupe to come out so I could upgrade my 2 door Caddy Lifestyle. HPVO we need you to enhance our lives!

    About the Union Issue. I was a Teamster for 5 years and still have my honorable withdraw card. The union fees went up every year and we got nothing in return. The day I left the local I also got a 3 dollar an hour wage increase in a non union shop.

    Mark fixes carss last blog post..Feb 22, Online Auto Repair Manual | Auto-facts.org

  4. In another era I would have agreed with Elvis, but the days of unions putting a lockhold on management appear to be over. At least if these companies are to survive and thrive.

    Legacy costs have been too much of a burden for General Motors, Ford and Chrysler to bear, and that is what is killing them. True, management negotiated in good faith with the rank and file, but they many mistakes for agreeing to union demands.

    As far as cars people want to buy, before the downturn began all three companies had plenty of models consumers wanted. They still do. Quality has improved, especially at Ford, so that argument doesn’t hold unless you’re talking about Chrysler.

  5. Unions have outlived their usefullness. We cannot compete against foreign manufacturers when we have to pay for lefetime benefits for retirees, and regular benefits for present workers. There was a time when they were needed, but it has passed. I’m pretty sure that those who have lost, or will lose their jobs, would rather have one than be booted out because the unions would not concede that these are difficult times.

  6. Unions have won many hard fought negotiations for pay and benefits. The time has arrived for them to help with the survival of the industry.
    Many of the luxuries we have can be attributed to workers rights and men who died starting unions.
    That being said the unions are not the reason the industry is in trouble.
    The reason they are in trouble is they have not designed and built cars people want to buy. The competition for the automotive dollar has never been better. The design, quality, and marketing of American automobiles is not the responsibility of unions but management.
    Let’s not begrudge the workers making a decent living for hard work.
    One of the biggest problems for the industry is the adversarial relationship between the unions and management. Let’s find a way to let management and the unions succeed together.

  7. Unions have won many hard fought negotiations for pay and benefits. The time has arrived for them to help with the survival of the industry.
    Many of the luxuries we have can be attributed to workers rights and men who died starting unions.
    That being said the unions are not the reason the industry is in trouble.
    The reason they are in trouble is they have not designed and built cars people want to buy. The competition for the automotive dollar has never been better. The design, quality, and marketing of American automobiles is not the responsibility of unions but management.
    Let’s not begrudge the workers making a decent living for hard work.
    One of the biggest problems for the industry is the adversarial relationship between the unions and management. Let’s find a way to let management and the unions succeed together.

  8. Yvette, you have a very good point. Unions were once very useful to the worker who needed protection from predatory companies, but that usefulness has passed by. These days various state and federal laws ensure workers’ rights, making unions a dinosaur.

    Bankruptcy won’t get rid of unions but it could reopen union contracts and make them less onerous to the automakers.

  9. I don’t understand why doesn’t GM get rid of the union and start fresh. It’s not like they can not find others to fill the job. Unions were once great now the are like leaches, they are worse than bottom feeders. American’s can not afford to pay the high rates anylonger. It’s not rocket science. STOP acting as if it’s so difficult. Greedy people have ruined this great country.

Trackbacks

  1. [...] More GM Performance Division… SORRY… Repost http://www.autotrends.org/gm-whacks-…ance-division/ Saw this on a Cobalt site, hopefully not a repost. Sad day for GM! [...]

  2. [...] be bad news if true, lets hope not http://freiburgersjunkyard.com/blog/…d-For-Now.html http://www.autotrends.org/gm-whacks-…ance-division/ Last edited by hybryd40; Today at 02:41 [...]

  3. [...] Your page is on StumbleUpon [...]

  4. [...] on their own accord then they need shifted out and we need someone who can survive in place. Matthew C. Keegan(new comment) February 19th, 2009 at 1:23 [...]

  5. [...] to Google Latest Content GM Whacks High Performance Division – 28 minutes ago One of the best ways to sell cars, at least in the eyes of those who make them, is [...]