Gm May Sell Medium-duty Truck Business

General Motors Corp. may sell its medium-duty truckreal speeds," Burns noted. "We've taken the world's
business as it concentrates on making a profit frommost technologically advanced vehicle on a 300-mile
building cars and light trucks. "We are consideringroad trip to show we've overcome a big hurdle
options for our medium-duty truck business to bettertoward commercializing our fuel cell vehicles --
position the unit for growth," GM spokeswoman Melisaachieving the driving range expected by today's
Tezanos said Wednesday. She wouldn't comment onconsumers.
potential purchasers. The largest American automakerHe added, "Sequel and GM's other fuel cell vehicles
does not break out the unit's financial results.address these very real concerns pointing the way to
In 2006, the unit manufactured about 40,800 Chevroleta new energy future a future in which hydrogen is a
Kodiak, GMC TopKick and Isuzu T-Series models.common energy currency for our vehicles in which
These vehicles are primarily used as dump trucks andhydrogen and electricity become interchangeable
delivery vehicles. Additionally, the Flint Journal reportedenergy carriers in which both are created from
this week that Navistar International Corp. may bediverse, and largely renewable, energy resources."
interested in the Flint-based unit. The latter employsEnd of Sequel
about 500 people. Roy Wiley, a spokesman forIn the New York test, the automaker put its two
Warrenville, Ill.-based Navistar, declined to comment.existing Sequel development vehicles on a
"This deal makes so much sense, I hope it gets done,"cross-country run that included numerous hills and
Bear Stearns analyst Peter Nesvold said Wednesday.temperatures in the mid-80s. Notwithstanding the
Nesvold estimated that the medium-duty truckchallenges, both vehicles completed the run with only a
business has annual revenue of about $2 billion and isfew precautionary stops to check on temporary fault
worth $450 million to $500 million.readings from sub-systems. The vehicles each used
If Navistar were the buyer, the new production couldless than seven kilograms of compressed hydrogen
add 50 cents to $1 a share to that company'sand averaged an equivalent of 43 mpg, impressive for
earnings, wrote Nesvold in a report Tuesday. Nesvold,large bodied SUV-style vehicles that weigh 5300
who is based in New York, rates GM sharespounds.
"outperform" and Navistar shares "peer perform."However, the Sequel has no plug-in feature and can
Still recuperating…only drive for a few miles on stored energy once the
The Detroit automaker has sold over $16 billion inhydrogen tanks are empty. The test vehicles also
assets in the past couple of years to pay operatingcarry a host of technologies, such as steer-and
costs as it posted net losses of $12.4 billion. Chiefbrake-by-wire controls instead of standard hydraulics,
Financial Officer Fritz Henderson said April that GM iswheel hub motors and a lighter weight aluminum
still reviewing options for assets, including the Allisonstructure.
Transmission unit in Indianapolis, which are outside itsMany of the same engineers and technicians who
main automotive operations.developed the Sequel are now on the Volt team. The
To stress, the Detroit automaker is currently underSequel gets a power boost with the help of a pack of
pressure to boost sales of cars and light trucks in thelithium-ion batteries, the same as those found in
United States after Toyota Motor Corp. outsold GMcomputers and cell phones.
worldwide last quarter for the first time ever. TheEngineers behind the Sequel said they have managed
automaker needs the help of Green Filters to sift thea 30 percent increase in energy efficiency since
mismanagementSeptember. Chris Borroni-Bird, GM's director of
This year, GM announced its target global sales of 9.2advanced technology vehicle concepts, said the
million cars and trucks, while Toyota expects to sellSequel will be indicative of future automobiles, which
9.34 million. GM's asset sales include 51 percent of itswill benefit from advancements in electronics rather
finance unit to a group led by Cerberus Capitalthan mechanics. "We haven't changed any of the
Management LP, increasing $13 billion over three years,hardware (since September)," Borroni-Bird said. "We've
and stakes in Suzuki Motor Corp., Isuzu Motors Ltd.improved the software."
and Fuji Heavy Industries Ltd., creeping up $3 billion.Top ad exec to depart
GM's cash, marketable securities and funds availableSeparately, GM chief North American advertising
from a retiree health care fund plummet to $24.7 billionexecutive is leaving the company after just over a
at the end of March from $26.4 billion at the end ofyear on the job, GM said on Thursday. Mike Jackson,
December as the automaker made a $1 billion payoutone of the highest-ranking African-American
to GMAC and another $1 billion for a convertible bondexecutives at GM, will leave June 15 divulged the
payment.automaker in a statement. Jackson oversaw
On producing commercial fuel cell vehiclesunprecedented change since taking over advertising
GM announced its plan to manufacture commercialfor the automaker’s eight brands and its corporate
fuel vehicle like the Volt in a span of four years.image.
Larry Burns, GM's vice president for research andThe automaker has uprooted several long-help ad
development, said the next step is to continue work onaccounts amid an industrywide shakeup in automotive
production engineering of the Chevrolet Volt fuel celladvertising. He also created GM Style, a celebrity
E-flex system, which contains the same basic fuel cell,fashion show help on the banks of the Detroit River, to
battery and electric drive combination as the Sequel.lead into this year's North American International Auto
The decision to go ahead with production engineeringShow.
of the Volt -- with a plug-in, gasoline engine version as"Throughout his tenure, Mike has contributed to GM's
well as the fuel cell variant -- was recently firmedimproved product image, and brought a creative
up."We are now entering into a mainstream vehicleapproach to GM's market presence," according to the
production process that typically lasts three to fourGM statement from GM marketing chief Mark
years," Burns added. "We are no longer in theLaNeve. The managers and support staff who
skunkworks stage."reported to Jackson will now report to LaNeve.
"What makes this different is we're on real roads with