Hybrid Caddy Escalade to be offered in fall of 2007
By JAMIE LAREAU AND RICHARD TRUETT | AUTOMOTIVE NEWS
AutoWeek | Published 02/01/06, 11:19 am et
Wagoner made the announcement Wednesday at the Baltimore transmission plant during a ceremony to name the plant as the builder of GM’s hybrid transmissions.
The hybrid version of the Escalade will use a new transmission made by GM’s Allison division. The two-mode hybrid system will be similar to what GM will use in the hybrid version of a Chevrolet Tahoe and GMC Yukon SUVs.
The hybrid Escalade will get a 25 percent gain in fuel economy, meaning the vehicle could get close to 30 mpg on the highway.
The supplier for the nickel-metal batteries to be used in the Escalade will be Panasonic EV, a Japanese company.
GM is spending $118 million to tool up for production of the hybrid transmissions.
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Brett Clanton / The Detroit News
BALTIMORE -- A day after President Bush called for more research into alternative energy sources to power automobiles, General Motors Corp. said it will invest $118 million at a plant here to make transmissions for fuel-saving, gas-electric hybrids that will be introduced next year.
The fortuitously timed announcement, which will result in up to 87 new jobs, will make GM the first automaker to build and design mass-market hybrid transmissions in the United States.
And, it gives GM a platform to enter the small but growing hybrid market that is now dominated by Japanese automakers.
While a latecomer to the hybrid market, GM Chairman Rick Wagoner said the automaker's new "two-mode" hybrid system, launching in late 2007 on the Chevy Tahoe and other full-size SUVs, will one-up the competition because of its advanced design.
GM said its two-mode hybrid system, unlike the gas and electric engines found in the Toyota Prius and other hybrids now, provides improved fuel economy in stop-and-go driving and at highway speeds.
"We believe the two-mode system will become the industry standard," Wagoner said to workers at a presentation at GM's Baltimore transmission facility, where GM already builds a hybrid transmission for a small fleet of heavy-duty trucks and buses.
The upbeat event, attended by Maryland Gov. Robert Ehrlich and U.S. Sen. Barbara Mikulski, comes in contrast to months of gloomy restructuring announcements and bankruptcy speculation about the world's largest automaker.
GM, which lost $8.6 billion last year, is struggling to turn around its North American auto business, which has been hit hard by declining sales of its profitable SUVs, rising labor costs and increased foreign competition.
Eager to change the conversation, the automaker on Wednesday marshaled its full resources to celebrate an event that might have otherwise escaped notice.
Adding 87 new jobs in Baltimore does little to backfill the 30,000 hourly positions GM plans to cut by 2008 as part of a plan to match factory capacity with its depressed U.S. market share.
But United Auto Workers Vice President Richard Shoemaker took comfort in the move given the current climate of downsizing in the U.S. auto industry.
"There's not a lot of positive news today," he said. "So we all savor what we get."
Developed in a venture with DaimlerChrysler AG and BMW AG, the two-mode system will improve the fuel economy of GM's full-size SUVs by 25 percent and is part of a larger GM strategy to offer a spectrum of hybrids for every consumer taste and budget.
But Wagoner said GM is further working on a range of other fuel-saving efforts such as efficient six-speed transmissions and emerging technologies like fuel cells that could help reach President Bush's goal to vastly reduce the nation's dependence on foreign oil by 2025.
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