GM's 2005 Lineup Reflects Focus On Delivering Best-In-Class Products

DETROIT, July 27, 2004 - General Motors enters the 2005 model year focused on delivering best-in-class products to strengthen its brands and capitalize on favorable economic trends, according to Paul Ballew, GM executive director of Global Market and Industry Analysis.

"GM has a comprehensive strategy for dealing with a very competitive, dynamic market," said Ballew, speaking at GM's annual new products preview for the media. "The strategy is comprehensive and yet simple, and that is getting the basics right."

Ballew said "the basics" include a focus on cost, productivity and quality; technological leadership including fuel economy; and delivering great products as part of building strong brands.

Ballew expressed optimism about both U.S. and global automotive industry sales trends. GM expects industry sales in the low 17-million-unit range in 2004 with modest growth in 2005. In addition, global sales are projected to top the 60-million unit mark this year for the first time, Ballew said.

Ballew forecast continued growth in the luxury segment and in trucks, with the average U.S. vehicle transaction price rising to $27,023 in 2003, up from $26,249 the year before. One reason for rising transaction prices is a 30 percent improvement in the affordability of vehicles compared to just a little more than a decade ago, based on vehicle cost as a percentage of personal income. This improved affordability is helping foster the trend of consumers buying more expensive vehicles, with U.S. luxury vehicle sales reaching 1.8 million units a year and one-third of all vehicles sales having a transaction price of $30,000 and up. As a result of these trends, industry revenue gains are forecast to be in the 6 percent to 7 percent range this year and next, according to Ballew.

Ballew said he is optimistic that GM will continue to make strong progress because of its unrelenting attention to quality, productivity and cost. As an example of progress in third-party quality studies, GM's Buick and Cadillac brands were among the top five nameplates in the J.D. Power and Associates 2004 Vehicle Dependability Study, with Buick No. 1 among non-luxury nameplates. GM had three segment-leading models in the study: Chevrolet Malibu (entry midsize car), Chevy Tahoe (fullsize SUV) and GMC Sierra HD (heavy-duty fullsize pickup).

GM and its dealers are also making significant strides in customer satisfaction, according to the J.D. Power 2004 Customer Satisfaction Index Study. All of GM's brands scored above industry average, with Buick ranked as second overall and No. 1 among non-luxury brands, and Cadillac and Saturn also placing in the top six spots.

Ballew noted that GM posted a 5.2 percent overall improvement in its North American manufacturing productivity over the last year, and its overall productivity has improved 25 percent over the last six years, according to The Harbour Report. In the 2004 study, GM assembly plants led eight of the 14 categories and took four of the top five spots in the overall assembly plant rankings.

Fuel economy leadership

GM leads in fuel economy in more car and truck segments than any other automotive manufacturer. Within Ward's Automotive segmentation, GM leads in nine of 25 segments, based on analysis of GM and EPA's 2004 model year data. Eighteen of GM's 2005 products achieve 30 mpg highway or better, more than any other manufacturer.

Ballew said GM would build on this leadership in 2005 by applying fuel-saving advanced technologies to high-volume production vehicles. For example, with Displacement on Demand available on the 2005 Chevrolet TrailBlazer EXT, GMC Envoy XL and Envoy XUV equipped with the Vortec 5300 V-8 engine, fuel savings of up to 8 percent can be realized in certain light-load driving situations as the engine seamlessly switches between eight- and four-cylinder operation.

In addition, Chevy Silverado and GMC Sierra trucks equipped with gas-electric hybrid technology can realize fuel savings of up to 10 percent over comparable trucks. The hybrid pickups feature the 5300 Vortec V-8 and Hydra-Matic 4L60-E four-speed automatic transmission coupled with a new hybrid technology that provides the best highway fuel economy of any full-size truck on the market.

GM also will bring improved fuel economy to its full-size trucks through a series of improvements, including an improved cooling system, a new voltage control system and aerodynamic enhancements. The improvements add up to a fuel economy increase averaging 1 mpg across the full-size truck portfolio.

Brand highlights

Best-in-class products have created positive momentum at Cadillac, GMC and Chevy Truck, and GM will continue to strengthen those brands in 2005, Ballew said. Building on lessons learned in the success of those brands, GM is investing in revitalizing the Buick, Chevrolet Car, Pontiac and Saturn brands and is also focused on leveraging its Saab and HUMMER luxury brands, Ballew added.

Following are brand highlights for GM's 2005 lineup:

Cadillac, enjoying, its best sales in 15 years, continues its renaissance with the introduction of the all-new STS, a luxury performance sedan designed to deliver exceptional performance in either rear-wheel drive or all-wheel drive. The Cadillac CTS offers buyers a powerful new base engine, a 210-horsepower, 2.8-liter V-6 with variable valve timing (VVT), while the higher-end CTS with the 255-horsepower, 3.6-liter V-6 VVT engine receives a new six-speed manual transmission.

Chevrolet rolls out the highly anticipated sixth-generation Corvette and three all-new nameplates. The 2005 Corvette features more power with the potent new 400-horsepower, 6.0-liter LS2 V-8, better handling, reduced weight and dramatic new styling. The SSR also gets the 6.0L V-8 and an optional six-speed manual transmission, giving it a new dose of power to match its outrageous looks. Chevrolet's new nameplates are: Cobalt, a line of coupes and sedans that will rewrite the rules of the small-car market; the Uplander, which revolutionizes the mid-van market by combining the best features of these family haulers with the bold styling of an SUV and the operating efficiency, responsiveness and quiet ride of a sedan; and the Equinox, bringing a higher level of innovation and versatility along with class-leading standard power to the compact SUV market. The HHR, a crossover vehicle with expressive design and surprising functionality, will add to Chevy's growing family of SUVs when it goes into production in summer 2005 as a 2006 model.

GMC, which has set sales records in 10 of the last 11 years, will feature three new Denali models - Envoy Denali, Envoy XL Denali and Sierra Crew Cab Denali - in its lineup. Envoy Denali and Envoy XL Denali feature interior and exterior styling enhancements, and are powered by the 300-horsepower Vortec 5300 5.3-liter V-8. The Sierra Crew Cab Denali features premium exterior and interior cues and is powered by the 345-horsepower, Vortec 6000 6.0-liter V-8.

Buick begins a renewed emphasis on cars while continuing to build momentum on the truck side of the market, with GM investing $3.2 billion to create an all-new product portfolio by 2006. The first of Buick's new cars is the LaCrosse premium midsize sedan, with a totally new design, a powerful new available 240-horsepower, 3.6-liter VVT engine and a smooth, quiet ride with agile and responsive handling. Building on the division's truck sales momentum, Buick introduces the 2005 Terraza, a seven-passenger premium crossover sport van featuring Buick's improved independent suspension system and QuietTuning. A 2006 model year replacement for the LeSabre will debut in late 2005.

Saturn will broaden its lineup, adding the Relay family utility vehicle, while adding significant refinement to the Ion. The first Saturn that can seat seven people, Relay combines SUV-like styling with the functionality of a mid-van. The Ion sedan receives a new front fascia, grille and trim, and both the sedan and quad coupe benefit from upgraded interior materials and new, more comfortable seats. The 205-horsepower, performance-oriented Ion Red Line brings an extra level of excitement to the lineup. Relay will be the first of four all-new Saturn products to come to market as Saturn doubles its portfolio within the next 18 to 20 months. The portfolio will include an all-new roadster debuting in early 2006.

Pontiac builds on its product renaissance with the new G6 and Montana SV6. A game-changing midsize sedan, the G6 is a tightly wrapped package of total performance, a driver-oriented and greatly refined interior, a market-exclusive available Panoramic roof, and outstanding quality and safety that carries Pontiac's dramatic yet refined new design language. The G6 will be offered at launch with a 200-horsepower, 3.5-liter V-6; a 170-horsepower, Ecotec 2.4-liter VVT four-cylinder and a 240-horsepower, 3.9-liter V-6 will be offered beginning in mid-2005. The Montana SV6 crossover sport van was designed with the rugged styling cues of an SUV, but maintains the versatility and capabilities of a mid-van. The 2005 GTO features the new 400-horsepower LS2 V-8, available hood scoops and a split dual exhaust system. Solstice, a classic roadster built on GM's Kappa small rear-wheel-drive architecture, will hit the market in the 2006 model year with a 170-horsepower, Ecotec 2.4-liter four-cylinder and a five-speed manual.

Saab will double its product portfolio in 2005 with the arrival of two new products. The all-wheel-drive 9-2X, available with two four-cylinder engines - a 165-horsepower base engine and a 227-horsepower turbocharged version - gives Saab an entry in the growing premium sport compact segment. The all-wheel-drive 9-7X midsize SUV brings Saab into the growing luxury SUV market with its premium, driver-oriented interior and sporty handling. The 9-7X will be offered with a 275 horsepower, 4.2-liter I-6 or a 300 horsepower, 5.3-liter V-8.

HUMMER continues to bring its distinctive style and unmatched off-road capability into new segments with the addition of the new H2 SUT. The SUT - or sport utility truck - is an innovative new body style for the H2 featuring a cargo bed in the rear that is adaptable and expandable at the touch of a button. The new midsize H3 arrives in mid-2005 with a 220-horsepower, 3.5-liter inline five-cylinder engine. HUMMER also will introduce its Alpha Performance Series with the 2006 H1 Alpha, debuting mid-2005 with a 300-horsepower, 6.6-liter Duramax turbo-diesel V-8 engine and an Allison heavy-duty transmission.