New GM 4.5L Diesel Truck Engine Would Secure Jobs, Future of Tonawanda Plant

[Ming]

GM plant woos diesel engine line; Would secure 150 jobs at Tonawanda
By David Robinson and Fred O. Williams
The Buffalo News
05/22/07

GM plans a 4.5-liter diesel that would be available in some pickups and SUVs after 2009. Making the diesel engine would be a first for the plant on River Road, which makes gasoline engines for GM cars and trucks.

The diesel would broaden the scope of the $300 million expansion that the automaker announced in January for its 1,860-job factory. That project will build eight-cylinder gasoline engines for future luxury cars.

Production of the gasoline engine is scheduled to begin in 2008. The new diesel would start production in October 2009, if the Powertrain Division plant is selected. Brown said she doesn’t know how many other GM plants are bidding for the new work.

The Erie County Industrial Development Agency approved Monday an additional $350,000 in sales tax savings linked to the possible expansion, said Alfred Culliton, the agency’s chief financial officer.

George Schneider, GM’s regional tax manager, told IDA officials that the additional sales tax break would put the Tonawanda plant in a better position to win the additional investment from GM.

“We’re in an extremely competitive environment,” he said.

IDA officials said the total investment associated with the new production line would be around $77 million. Brown, of GM, put the investment at $88 million.

At an expected production of 200 engines per shift, the diesel would be a relatively small product for Tonawanda but one with implications for the site’s future.

With gasoline prices topping $ 3 a gallon and approaching $4 in parts of the country, diesel engines are gaining more attention as a way to boost fuel economy.

“It’s really important to get out in front on some of these alternative fuels,” Schneider said.

GM and other automakers are planning diesel engines for light trucks in advance of tighter federal fuel economy standards expected in 2011.

“Obviously, diesel is a good alternative — you get a 25 to 30 percent increase in efficiency,” said Paul Lacy, a research manager with analyst Global Insight in Troy, Mich.

Once linked with sooty, high-sulfur exhaust, diesel fuel for cars and trucks must meet higher environmental standards under rules that began to take effect last year.

Whether diesel trucks will appeal to buyers depends on fuel prices and on the extra cost of the vehicle, Lacy said. The U.S. average price for diesel is $2.80 a gallon, 41 cents less than gas, according to the U.S. Energy Information Administration. In the Buffalo Niagara region Monday, a gallon of diesel averaged $3.01, compared with $3.11 for a gallon of regular gas, according to the AAA of Western and Central New York.

GM has discussed plans for a diesel that would be available in some full-size pickup trucks and SUVs. The planned engine would fit into the spot reserved for a gasoline engine but with 25 percent better fuel efficiency.

Full Article: http://www.buffalonews.com/cityregion/story/81257.html

[doh]

With Internatoinal's marriage to Ford, and the already established 4.5L Internatoinal diesel, and Ford's stating of a new diesel, GM must follow suite.

The first to bring a diesel to market, will well always be the first to offer a diesel in a light pick up

[Sporer65]

As mention aboved with Ford, Dodge is also getting new diesels in it's 1500. Seems like 2009/2010 will be the year of the diesels for 1/2 ton trucks.

[gardnet1]

Ford is using a Land Rover diesel for the F150 and I think Expedition for MY2009.

A 4.5L is by no means small power/torque wise. It would really help Silverado, Avalanche, Hummer and Tahoe shore up sales, especially compared to others. Plus, Jeep Grand Cherokee is already on sale with a diesel that gets like 24/20 (07 mileage standards). Next, GM needs a 3.0 -3.6L for the Colorado, Lambda, etc. If diesel goes vogue via pump pain, GM & Ford are in great shape thanks to their European Ops. But then again, so are the Germans. Chrysler will continue to have access to daimler as long as they can afford it.

As for Navistar, Ford will probably dump them next go around. Not because they didn't do a good job this time but because they aren't sharing responsibility for the 6.0 woes and they are too difficult and untrustworthy to work with. Risk = Probability times Impact and Navistar is a high Yellow risk that Big Blue can't afford right now.

BTW did any read that article last week that Navistar is considering buying GM's Medium Truck Division? That one threw me off guard, but hey if GM is thinking about spinning off Allison...everything is on the table.

[mmm...bowtie]

How would this engine be priced? The Duramax is a $7200 option on the heavy duty. I'm not saying a smaller diesel would cost that much, but for the average 1500 buyer that doesn't have need for huge towing capacity, will it be worth the extra cost, especially with the added cost of meeting emissions regulations?

[minnfang]

Originally Posted by Ming

The diesel would broaden the scope of the $300 million expansion that the automaker announced in January for its 1,860-job factory. That project will build eight-cylinder gasoline engines for future luxury cars.

Production of the gasoline engine is scheduled to begin in 2008.

Are they talking about the "Ultra" V8 for '09 model cars?

[gardnet1]

Originally Posted by mmm...bowtie

How would this engine be priced? The Duramax is a $7200 option on the heavy duty. I'm not saying a smaller diesel would cost that much, but for the average 1500 buyer that doesn't have need for huge towing capacity, will it be worth the extra cost, especially with the added cost of meeting emissions regulations?

I bet $ 2,500 - $3,000 of that is pure profit for the General.

[PA Dweller]

When are we going to see Diesels in the cars and crossover's GM sells???

[GMFreak8]

Please let it be in the Suburban!

[redimpss5]

A smaller Diesel would be great to put into some other platforms.

[Stéphane Dumas]

Originally Posted by redimpss5

A smaller Diesel would be great to put into some other platforms.

I agree, I could imagine it being installed under the hood of a Zeta car and/or the Cadillac STS/CTS.

[rlchv70]

Originally Posted by gardnet1

As for Navistar, Ford will probably dump them next go around. Not because they didn't do a good job this time but because they aren't sharing responsibility for the 6.0 woes and they are too difficult and untrustworthy to work with. Risk = Probability times Impact and Navistar is a high Yellow risk that Big Blue can't afford right now.

Remember, there's two sides to every story...

[VCDJ]

Diesel is a much better choice then any hybrid. First diesel gets same or better mpg as hybrid, but it cost less and diesel fuel is less expensive. Gm needs to put diesel engines in midsize cars.

[Buick61]

So the displacement mystery has been solved. This was the "secret displacement" diesel that GM had showed to journalists in a Rainier last year, right?

[Z06ified]

Originally Posted by GMFreak8

Please let it be in the Suburban!

Amen to that!

I love my 1999 diesel Suburban (the last year one was offered with a diesel - the 6.5L turbodiesel). Whenever it dies (hopefully not for another 5-10 years - has 160k on it now), I plan to replace it with another new diesel SUV, and I would like it to be a new diesel Suburban. I would be shocked if GM didn't put this new diesel in the Suburban. The article mentioned it will be in some SUV's, and the Suburban makes the most sense for a diesel out of all the SUV's GM sells as it is the biggest, heaviest, and used the most for towing. I would expect the Hummer H2 will also get the diesel as an option.

Should be good! I think I'll wait until the 2011 or 2012 model year before buying, giving them a year or two to work out any kinks with the new engine. My '99 should have about 250k on it by then.