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Those of you who felt it was a long time coming may find the news a little disappointing. ABC News pulled no punches:

Under Wagoner's leadership, GM lost tens of billions of dollars, took billions in taxpayer-financed aid, and announced plans to cut 47,000 employees by the end of 2009

[ABC News]

More about Frederick (Fritz) A. Henderson:

Fritz became GM president and chief operating officer on March 3, 2008. He had been vice chairman and chief financial officer since January 1, 2006.

Reporting to Henderson in his current position are GM's four regional presidents, as well as the global leaders for powertrain, quality, manufacturing and labor relations, and purchasing and supply chain. Henderson is a member of GM's Automotive Strategy Board and Automotive Product Board.

Born in Detroit, Michigan, on November 29, 1958, Henderson earned a bachelor of business administration degree with high distinction from the University of Michigan in 1980, with an emphasis in accounting and finance. He was a pitcher on the varsity baseball team in 1978-1979. He also received a master's degree in business administration from Harvard Business School in 1984, where he graduated as a George F. Baker Scholar.

Henderson started his career at General Motors in 1984 as a senior analyst in the Treasurer's Office in New York. After holding a variety of financial assignments, he was transferred to GMAC in 1989 as director of mortgage banking. He was promoted to several positions of increasing responsibility until becoming GMAC group vice president of finance in Detroit in 1992.

In 1994, he was appointed executive in charge of operations for the former Automotive Components Group in Pontiac, Michigan, and then became a GM vice president and general manager of Delphi Saginaw in May 1996.

From 1997 to 2000, Henderson was GM vice president and managing director of GM do Brasil with responsibilities for GM operations in Brazil, Argentina, Paraguay, and Uruguay. In June 2000, Henderson was named group vice president and president of GM Latin America, Africa and Middle East (LAAM) headquartered in Florida, and in January 2002, he moved to Singapore as president of GM Asia Pacific. In 2004, Henderson assumed responsibility for GM's European operations as GM group vice president and chairman of GM Europe, based in Zurich, Switzerland.

Prior to graduate school, Henderson was a certified public accountant, working for PriceWaterhouse in Detroit, Michigan. He received the William A. Paton Award for achieving the highest score in Michigan on the May 1980 CPA examination; he also received the Elijah Watt Sells Award for attaining one of the top 100 scores in the U.S.

Henderson serves as a member of the Board of Trustees of the Alfred P. Sloan Foundation.

UPDATE: Politico's reporting President Obama asked Wagoner to step down. This is getting more and more interesting, ain't it?

UPDATE #2: We're now hearing from a source at GM that Fritz Henderson will be taking over as CEO of the nation's biggest automaker. Frankly, Fritz ain't the worst choice to take over from Wagoner. To be honest, however, it's not like there's a whole lot of other choices out there.

UPDATE #3: Here's more from Bill Vlasic at the NYT:

"Mr. Wagoner was asked, and agreed to, step down as part of G.M.'s restructuring agreement with the Obama administration, according to an administration official who spoke on condition of anonymity because a formal announcement has not been made yet.

The unexpected move by Mr. Wagoner, who has been at the helm of G.M. for eight years, was not confirmed by the company. A statement about Mr. Wagoner's future will be issued after the president's comments, which is expected to be Monday morning."

UPDATE #4: The Freep has a pleasant little photo gallery of GM executives through the years. It's almost poignant. Almost.

UPDATE #5: Fritz Henderson will be appointed interim CEO after tomorrow's double-bump of press conferences.

[via NYT]

Photo Credit: MANDEL NGAN / AFP

One may be concerned General Motors isn't taking the White House bailout seriously, but they've learned the hard way appearances do matter. Here's a radical suggestion: no more "Casual Fridays" until you turn things around. The Carpocalypse demands your obedience and neckties.

Also see Gawker's take on GM dress wear!

Bob Lutz Career Chronology:

1963 - 1971: GM
The CEO at GM for the first four years was Frederic G. Donner and James M. Roche for the latter half of Bob's time at GM Europe in the 60s and 70s. Ah, those were the days. You know, when GM was totally getting sued for making cars "unsafe at any speed."

1971 - 1974: BMW
While at BMW, the CEO was Eberhard von Kuenheim, who helmed the company from 1970 to 1993. During those 23 years, BMW went from 23,000 employees to 71,000 and annual revenue rose from €15 billion from €880 million. Maybe the best CEO Lutz has actually worked for, but this was in the 70s and he probably doesn't remember that far back.

1974 - 1986: Ford
Bob got to work with all sorts of fun folks like Lee Iacocca and Henry Ford II during some of the most tumultuous years of the automotive industry. Well, until this year. Also helming Ford were non-luminaries such as Phil Caldwell and Don Peterson. Remember them? Yeah, we don't either.

1986 - 1998: Chrysler
Heads to Chrysler to work with his buddy Lee again, then Bob Eaton. Gets to design the Dodge Viper (yay!) and the PT Cruiser (boo!)

1998 - 2002: Exide
Bob actually IS the CEO here, so presumably he believes Rick's better than he is. We've no doubt of this.

2002 - present: GM
Bob workin' it with "Slick" Rick Wagoner where the two get along like peaches n' cream.

[CNBC]

Sen. Chris Dodd (D-Apparently Knows How To Make Cars Better Than Anyone) told Tom Brokaw on NBC's "Meet The Press" yesterday GM CEO Rick Wagoner "has to move on" and GM has "to consider new leadership" as part of a government-run restructuring. Given GM's lost billions of dollars and double digit market share over Wagoner's reign of terror at the General — why's that such a bad idea?

While we've been a vocal critic of GM's glacial restructuring effort, we've got to say the automaker probably should stick with the girl they brought with 'em to the ball — no matter how ugly. Mostly because we can't name anyone better who'd understand the product and the bureaucracy of the General. Yes, the very bureaucracy Wagoner never changed that made the automaker move so slowly to make the necessary changes in product to turn the ship around. But to bring in someone completely new to figure out that bureaucracy takes time GM just doesn't have without tens of billions more in public monies. While Ford CEO Alan Mulally seems like he's been able to do it at the big blue oval, it's taken him two years to get there. We're not even sure the General's got more than two months left in 'em.

What this automaker needs isn't a change in leadership so much as it needs an external force moving the current leadership to change quickly. "Slick" Rick Wagoner and Fritz "Big Money Grip" Henderson need to be pushed and pushed hard.

We all saw in Chrysler's ownership by Cerberus what happens when an outside entity with no knowledge of the complexities of the auto industry completely takes over an automaker. Frankly, we'd rather not see that happen with the other two not-so-Big Three. Instead, a system merging product and industry know-how with some kind of public oversight could come up with an understanding of the product necessary to make that change happen and how to make that product a reality.

Whether Nissan-Renault CEO Carlos Ghosn or Kirk Kerkorian's aborted attempt at making a quick buck, we've seen GM move quickly when some kind of external disruptor's been there to force change with the current leadership mix. If structured with the right level of power, that new external disruptor could be the third-party oversight board being recommended to oversee the public's investment in GM. Whatever the structural addition, there needs to be something forcing the leadership team at GM to move faster. And if then they're not moving fast enough, let that third-party board make the necessary changes, including lopping off Wagoner's head if need be.

Congress shouldn't fire Rick Wagoner as some kind of knee-jerk reaction designed to prove to their constituents the bridge loans for the not-so-Big Three aren't some kind of AIG-like boondoggle. But don't allow him to resume business as usual post bridge loan — hold Wagoner's feet to the fire until the General succeeds (if it's able to).

So we hate to say it but... Rick, would you like this dance? Just don this paper bag first, would you?

Here's what the AP's reporting this morning on details from over the weekend:

"The plan would draw the emergency aid from an existing loan program meant to help the automakers build fuel-efficient vehicles. The size of the package hasn't been finalized, but it is expected to be about $15 billion, several congressional aides said.

It would create a board composed of Cabinet secretaries from the departments of Treasury, Energy, Labor, Commerce and Transportation plus the Environmental Protection Agency administrator to oversee a broad auto industry restructuring. A congressional aide outlined the emerging measure on condition of anonymity because it is not yet completed."

All we know is Bob "The Builder" Nardelli's been praying since Friday night. We guess we may find out today if his prayers were answered.[via AP]

Photo Credit: Chip Somodevilla / Getty Images News

We appreciate the exuberance of the good people over at GM-Volt regarding the 2011 Chevy Volt. In the midst of the Carpocalypse it's nice to see someone excited about GM product that doesn't begin with a "C" and end in either a "V" or a "ZR1." Still, we can't help but enjoy the humor in the statement posted with this picture:

That’s GM’s CEO Rick Wagoner driving the Volt experimental prototype mule car of the right making sure to stay one step a head of the Prius!

Well, at least it's one way that GM can stay ahead of Toyota in the alternative-energy game.

[GM-Volt[

[via Donny Miller]

...stop friggin' nodding! I know you're excited RIck said something smart, but fercrissakes some of us are trying to listen to what he actually had to say and it's really distracting. . Thank you and carry on.

Ford: Escape Hybrid SUV

Ford CEO Alan Mulally started this trend by first claiming that he'd drive to D.C and, not surprisingly, showed up in a 2009 Ford Escape Hybrid. It shows to Congress and the world how Ford, which is in a better financial position than the other two, is making fuel efficient cars people want to buy and already has good hybrid technology. Ford also showed up with a 2009 Ford Flex to, we assume, move staff around.

Chrysler: Aspen Hybrid SUV

Chrysler's Bob Nardelli also drove to Washington, D.C. in a hybrid SUV: the 2009 Chrysler Aspen Hybrid. How does the Aspen Hybrid stack up against the Escape Hybrid? It gets worse gas mileage, it uses mediocre hybrid technology developed in conjunction with GM and is built into a car that's proven to be wildly unpopular.

But don't worry, they've already cancelled it — just four months after starting production. This not only demonstrates the company is unable to build attractive, efficient vehicles. It's another reminder parent company Cerberus is just waiting for Chrysler to get sold off to someone else.

He showed up to the hearing in a JEEP EV, a futuristic electric vehicle that will be a great halo vehicle for whichever company ends up owning Jeep.

General Motors: Chevrolet Volt Mule/Malibu Hybrid

General Motors' man at the helm Rick Wagoner drove to Washington, D.C. in a 2009 Chevy Malibu Hybrid but drove to the Senate hearing in a 2011 Chevy Volt test mule. There was also a Chevy Suburban and Cadillac CTS in the area, perhaps to shuttle executives around when not in front of the camera.

The fact that GM brought two different hybrid vehicles down shows the company is willing to work hard for the money, so hard for the money. The Volt prototype clearly demonstrates they're on the path to creating a mass production hybrid vehicle. The Malibu just shows they're not dumb enough to drive around Washington, D.C. in something unreliable.

The Entourage

Special thanks to STR8SIX for getting these live shots togther. His report below.

I made a short trip into downtown DC this afternoon. I was only able to spend about a half an hour snooping around the senate buildings. I found the Ford Flex and Escape hybrid from the Ford convoy. I also found an Aspen hybrid. Each of the vehicles had a driver sitting in it with the engine running. Unfortunately, I was unable to locate the Chevy Volt mule. One of the security officers said that GM was giving test drives in the Volt and did not know if it would reappear this afternoon. A dark red Cadillac CTS with the engine running was parked in front of the Ford vehicles. That may have been Wagoner's ride back to the hotel.

[Additional Photos From Win McNamee/Getty Images, Ford, Chrysler GM]

Photo Credit: Chip Somodevilla / Getty Images News

We kind of hope the Chrysler Aspen hybrid carrying Bob "The Builder" Nardelli made it. Ford CEO Alan Mulally may have accidentally gone to the Senate Armed Services Committee, so someone should check up on him.

But, according to Wagoner, there's one overwhelming reason why America needs to save their automakers:

"It's very important for the U.S. to have a home team in the global auto industry..."

Photo Credit: Win McNamee / Getty Images News

This flies directly in the face of GM CEO Rick Wagoner's past comments that a bankruptcy would mean liquidation because customers would refuse to buy cars from a company that might not be able to back warranties or supply parts. Our sources, whether from inside the General or from the outside, have given us similar arguments in the past.

That hasn't stopped staff for three members of Congress, who've asked restructuring experts if a pre-arranged bankruptcy — negotiated with workers, creditors and lenders — could be used to reorganize the industry without liquidation.

But it's not just the congressional committees at work here. According to another source, a representative of Obama’s team contacted at least one bankruptcy-law firm to say Daniel Tarullo, a professor at Georgetown University’s law school who heads Obama’s economic policy working group, would call to discuss the workings of a so-called prepack, according to this person.

But don't expect anything on this to come out of this week's hearings as we're also told

"Negotiations are splintered among small groups, making it unlikely a proposed solution such as bankruptcy would emerge until next week at the earliest..."

We'll obviously continue to be all over this story like a fat kid on cake. Stay tuned throughout the day to our "Carpocalypse Now" tag today as we bring you the latest news from D.C.

[Bloomberg]

There's General Motors CEO Rick Wagoner, stepping from a Chevrolet Malibu hybrid last night at his hotel in Washington to the flashing bulbs of the paparazzi after driving from Detroit to testify at Congressional hearings for an auto industry not-a-bailout. If the not-so-Big Three automakers have learned anything since their last trip to Washington, it's the old way of doing business just won't fly. So the decision by auto executives to travel in hybrid cars rather than corporate jets is just the start to overhauling their image as the industry pleads its case for more than $25 billion in federal loans.

The next step? Heading over to a 9:30 AM rally at the corner of Delaware Ave. and C street just outside the Russell Senate Building and the 10:00 AM Senate hearing. To get there from his hotel? He'll be driving a Volt mule. Seriously.

[via Breitbart, GM-Volt]

[Photo Credit: AP Photo/Gerald Herbert]

When asked about the request to the FAA, GM spokesman Greg Martin declined to discuss the reason, only saying "we availed ourselves of the option as others do to have the aircraft removed."

The move comes after the automaker was criticized for flying CEO Rick Wagoner (pictured above demonstrating a landing maneuver) in a leased Gulfstream Aerospace G-IV jet on November 18th and 19th to testify in front of Congress for a $25 billion loan to save the American auto industry.

While the move is something they're "allowed" to do, it's monumentally stupid given their desire for a bridge loan to save the company. Congress, the media and the public (even SNL!) already would like to tar and feather the automaker and it's CEO, this is yet another reason to do it. Just a hint to the PR staff at the General — right now you need more transparency, not less of it. You certainly don't need to be making moves easily perceived by the public as hiding information, and this can very easily be perceived as such.

We're beginning to wonder whatever happened to GM's vaunted PR staff — and whether there's anyone over there who's truly in command of the automaker's message.

[Bloomberg]

For example, when we heard Casey Wilson as NY Rep. Carolyn Maloney (D-Clueless) explaining to the auto chiefs Congress mandated 200 MPG cars and in doing so they've "done their part." The joke on cluelessly ineffective CAFE over-reaching was met with absolute silence. Contrast that with a moment later when Hammond, as Nardelli, responds to the question "What is Chrysler doing to make more fuel efficient cars?" with "I don't know." The joke's greeted with massive laughter. Here's a tip for GM, Ford and Chrysler — when you become a bigger punchline than Congress, you know you've done a piss-poor job at message management. Just sayin'... [SNL via Crooks and Liars]

When the management of these automakers start acting like they’re in crisis, then perhaps we’ll believe them. They’ve come to Congress not to rescue their companies but to salvage their lifestyles. This is an industry that desperately needs bankruptcy and collapse to put an end to unrealistic labor deals and obnoxious executive behavior. The American taxpayer doesn’t have any business subsidizing this failure."

You know you've got a problem not even a Rick Wagoner-penned op-ed in the WSJ will solve. What GM, Ford and Chrysler need to do is start getting the PR people in charge of fixing their image problem ASAP. If the PR people were already running the show, fire them and bring in new ones who understand the importance of a strong public image right now. Then sell the planes — despite there probably being a rational reason for them — fix your image and get back to the task at hand. You know, saving your company. [Hot Air]

But we digress. The talks apparently involved several meetings between the General's big bossman, "Slick" Rick Wagoner and its president, Fritz "Free Money" Henderson. On the Ford side of the table was Bill "Willie Style" Ford; and its CEO, Alan "Boeing-Boeing" Mulally, according to the Times.

Ford spokesman Mark "News-hound" Truby responded to Vlasic's determined questioning by declining to confirm discussions between the two automakers, and adding the following:

"What we can say is that we are convinced our best opportunity is to continue to integrate Ford and leverage our global assets...that remains Ford’s focus.”

Hmm, glad to see they're still integrating a company that's been around for over 100 years. Yeah, given that need, you'd probably want to remain focused on that.

But the big question remains — if GM was for a merger with Ford before they were for a merger with Chrysler — does that make them flip-floppers, or just really desperate for another automakers cash? [NYT]

Apparently, GM has been hard at work on a system for shortening powertrain development time. The company calls it RLM: Road to Lab to Math. If you're like us, the first thing you saw in that phrase was "Meth Lab," but we were assured stimulants are not involved. Instead, RLM is marketingspeak for removing expensive road testing from the design equation, first by replacing much of it with laboratory simulation, and finally, by collecting enough data that new engines and transmissions can be designed mostly in a computer (the "math" component). The new Powertrain Engineering Center is the "lab" component in the system.

So why all the emphasis on removing as much road testing from the vehicle design process as possible? Because it's expensive. Our hosts threw out one example of cost savings, citing the use of RLM during the design of GM's new 6-speed RWD automatic transmissions. Through lab testing, they were able to eliminate a third of the prototypes that would ordinarily be needed.

The other major breakthrough featured in the Global Powertrain Center is standardization across the globe, and interconnectedness to go with it. GM has a number of powertrain design centers around the world, and thanks to new integration in the headquarters, simulation data can be shared across all of them. We thought that sort of came along with the Internet back in the '90s, but hey, it takes what it takes, so huzzah!

In fact, much of the Powertrain Engineering Development Center is designed to accomplish things that we thought they were already doing. For example, engine and transmission cold-soak testing. Yeah, they've been doing that for decades, but the only way it was accomplished was by shipping entire cars and loads of test equipment to the arctic for a few months at a time. Now they can hook a big chiller up to a crate powertrain, cool it down overnight, and test it on a stand. We don't know why we find it surprising that they couldn't do that before, but we do.

Of course, the speed with which they can swap components in test cells has dramatically improved. Rather than having to hook each engine up individually in a cell, they can shuttle them in and out using big, air-pressure-lofted pallets. The swap time for a powertrain cell has been reduced from 24 hours to 20 minutes. Plus, 95% of the emissions from the test process are burned up in massive regenerative thermal oxidizers, and 15% of the plant's power is generated by engines on dynamometers.

After the tour, Chairman Rick and a cadre of local politicians pressed a giant red button, starting a soundtrack featuring engines revving, apparently symbolizing the ridiculousness of dedication ceremonies. But all pomp and circumstance aside, the Global Powertrain Engineering Development Center is quite a place, and since we live in SE Michigan, we salute any potential rise in property values it may bring. Of course, we'd probably say as much about a brothel if it were to accomplish the same thing.

If General Motors' global sales don't increase above their final tally of 9,369,524 for 2007, and Toyota actually hits their reduced number, Toyota wins. More ominously, GM hasn't provided a forecast for 2008 sales; given the thinly veiled sense of panic around the RenCen these days, there's concern that year-over-year sales figures could remain stagnant enough to allow Toyota to take the top spot.

As always, don't count out the power of cash incentives. We know the General too well to assume they won't toss a "buy a Yukon, get an Aveo for a dollar!" two-for-one promotion into the mix come November. GM for the win! And, as always, the eventual loss. [Automotive News (Sub. Req.)]

Among the initiatives Wagoner announced today were:

-Truck capacity reduction by 300,000 units, including stamping and engines
-Cutting sales and marketing budgets, particularly in motorsports and promotions
-Holding engineering expenses steady
-Reduce salaried headcount
-Eliminate health care coverage at 65 for retirees, but increase pension payments
-No base compensation increases for salaried employees through 2009
-No cash bonuses for executives
-Delaying next gen full size pickups and SUVs
-Delay V8 engine design developments
-Alternative and small displacement engine design budget increases
-Suspension of dividend payments
-Defer health care spending payments
-Explore sale of assets: Hummer under review, remaining brands focused on profit improvements
-Additional borrowing against assets

Prior to the news conference, an anonymous GM executive familiar with the plan said, reportedly with a straight face, "It will be a clear message on the ways we will restore our health, our measures to realign capacity. It's tough medicine, but it's real." Unlike every wave of job cuts since 1973, this one is REAL. Well, that should do it then.

Jalopnik Snap Judgement: The key is that no brands are under strategic review at this time. Everything depends on July sales numbers. We expect if sales are even lower than June, the General will change its tune faster than the reels on a gas pump. GM spokespeople on the other hand, will more than likely continue to sing off-key. Stay tuned. [Automotive News (Sub. Req.)]

The Journal claims GM has already taken Chevrolet and Cadillac off the table, considering them core to the company. But what about the rest of the lineup?

Saturn: GM's low-price, non-haggle, donut-loving import-fighter brand has reportedly never made a profit. Even with products like the Aura and Astra, it's having trouble making any inroads with consumers despite a loyal fan base. Coupled with the fact GM has reportedly stopped development work on the next-gen Aura, we think Saturn's got a good chance of getting to know Geo in the division dumpster.

Saab: The storied Swedish born-from-jets brand has either been vastly improved or pathetically watered-down during GM's ownership, depending upon whom you talk to. Either way, with only about 35,000 sales per year in the U.S. — about what the Accord sells each month — Saab is probably due for an ownership change.

Buick: If it weren't for Buick's gangbusters Chinese sales and the strong-selling Enclave, we'd be more concerned about the tri-shield brand. Would it go Asian-market only? Possibly, but Buick's made it out alive before, and we think it'll do so again. There are just too many old people out there to sell to.

GMC: GM's truck brand sells rebadged Chevrolets almost exclusively, and Acadia is reportedly already a goner. But the division has a strong brand presence among site foremen who enjoy driving the same vehicle their workers drive, but at a 10% premium. Will that be enough? We give GMC a 50/50 shot.

Pontiac: The performance division has Solstice, the G8, and the reasonably strong-selling G6. Pontiac has always been an image brand as well as a volume brand; is G8 enough to bring that performance image back? We're not so sure...but we don't think Pontiac is going away any time soon.

So, who's following Hummer (and probably about 25,000 current GM employees) out the door? Give us your thoughts. [WSJ]

Showing it off now is going to be like pulling a Camaro on us: By the time it hits the show floor, we'll be tired of the look. They'll be wasting acres of print space now, rather than revealing it with a flourish and sending it to dealers right away, Apple style. Whatever. We're not paid to come up with strategery, but making fun of it we can do all day. [TopSpeed]

The news isn't all doom and gloom, however: Third shifts are coming to the Lake Orion plant that builds G6 and Malibu and to the Lordstown plant spewing Cobalt and G5. In other words, big vehicles out, little econoboxes in. Next up: Chrysler announces new Lean Burn 300C.

When asked what he thought about global warming, Wagoner essentially said that the temperature is indeed rising. Yes, Wagoner, winter is fading for spring, I would hope the temperature would rise. I'll admit, I'm being a little rough on him and for that, I apologize for my crockery. [via WSJ]

Rick_Fan_001: I shit you not
wertraym: Of course they do — are they all wearing golf slacks and green sport coats?
wertraym: with white patent leather shoes?
Rick_Fan_001: of course
Rick_Fan_001: now they are juggling
Rick_Fan_001: and balancing objects on their faces
Rick_Fan_001: like bowling pins
Rick_Fan_001: dide - best part is I got this entertainment for free
wertraym: Is this the National Auto Dealers Association keynote by Rick Wagoner or the Barnum & Brothers Circus?
Rick_Fan_001: they are still balancing plates to the song flight of the bumblbee
Rick_Fan_001: I wish the transformer bumblebee would show up and fry these guys
wertraym: Maybe I'll just post this back-and-forth, kinda like a live-blog
Rick_Fan_001: wagoner in a yellow camaro
Rick_Fan_001: that would be killer
wertraym: Wagoner in a yellow Camaro, or posting this as a live-blog?
Rick_Fan_001: now six plates are going at once on poles
Rick_Fan_001: this rocks
Rick_Fan_001: hahahah
Rick_Fan_001: wait they are going for 7 plates
wertraym: Holy cow, the insanity
Rick_Fan_001: 60 yr old cheerleader is asking the crowd to go wild and cheer for plate 7
Rick_Fan_001: I kid you not
wertraym: I'm not sure I believe you
Rick_Fan_001: crap... a plate fell
wertraym: Did it break?!?!
wertraym: Oh noes!
Rick_Fan_001: no, just a thud
wertraym: Oh.
Rick_Fan_001: obviously not chinese made
wertraym: Anti-climactic
Rick_Fan_001: 60 yr old cheerleader is dancing now
wertraym: I can hardly contain my excitement.
Rick_Fan_001: shes jumping up and down and blowing on the plates to make them go around
wertraym: It's a 60-year-old female cheerleader?
Rick_Fan_001: Im getting hot...whoops wrong IM window
wertraym: Great...
wertraym: Is Wagoner actually going to speak,or is this some big tease?
Rick_Fan_001: I think they are wrapping it up
Rick_Fan_001: big finale coming
Rick_Fan_001: wait for it
Rick_Fan_001: wait for it
Rick_Fan_001: 9 plates!!!!
Rick_Fan_001: yes!
wertraym: No drops?
Rick_Fan_001: nope
Rick_Fan_001: they are catching them now
Rick_Fan_001: they are playing a polka
Rick_Fan_001: taking a bow
Rick_Fan_001: gotta save battery
Rick_Fan_001: be right back
wertraym: K
* Offline: Rick_Fan_001 has signed out.
* Online: Rick_Fan_001 has signed back in.
Rick_Fan_001: second act on stage
Rick_Fan_001: magician
wertraym: OMG!
Rick_Fan_001: they are tangoing
wertraym: Ask him to pull some car and truck sales out of a hat for GM
Rick_Fan_001: magician and his asst
Rick_Fan_001: he reaching into his hat
Rick_Fan_001: his blue gloves just turned red
Rick_Fan_001: now they are green
Rick_Fan_001: now they are yellow
wertraym: WOWZ!
Rick_Fan_001: wow
Rick_Fan_001: his asst just changed into clothes instantly
Rick_Fan_001: from red dress to yellow
wertraym: Was she out of clothes?
Rick_Fan_001: they are called 'QUick Change'
Rick_Fan_001: cuban music playing
Rick_Fan_001: Cuban Pete
Rick_Fan_001: singing chick chicky boom
Rick_Fan_001: asst just pulled out fake flowers
Rick_Fan_001: she has a giant tube
Rick_Fan_001: wow - big flowers in the tube
Rick_Fan_001: WoW - cool trick
wertraym: I'll be she does have a giant tube
Rick_Fan_001: new chick , other asst just disappeared
Rick_Fan_001: nice job
Rick_Fan_001: haha
Rick_Fan_001: he has a bottle of absithe
Rick_Fan_001: and monks are singing in the background
wertraym: Monks?
wertraym: So its not a Jewish magician?
Rick_Fan_001: heh
Rick_Fan_001: one sec
Rick_Fan_001: I'm mezmoreized
Rick_Fan_001: wow her dress just turned from blue to purple
Rick_Fan_001: now hes in a white outfit
Rick_Fan_001: so many clothes changes
Rick_Fan_001: now shes in a black and white polka dot dress
Rick_Fan_001: now its orange
Rick_Fan_001: I cant keep up
Rick_Fan_001: holy crap
wertraym: So like Rick Wagoner — a one-trick pony
Rick_Fan_001: he just spilled glitter on her and her dress turned white
Rick_Fan_001: Ed Sullivan is back on stage
Rick_Fan_001: he says they are opening up a strip malle
Rick_Fan_001: mall
Rick_Fan_001: get it - a strip mall cause the dresses were changing so fast
Rick_Fan_001: ed is doing impressions
Rick_Fan_001: Nor Cal resident
Rick_Fan_001: Clint Eastwood as a baby doing a poem
Rick_Fan_001: Im a little baby that you still have to carry - and I call my diaper Dirty Harry
Rick_Fan_001: I shit you not
Rick_Fan_001: Jack Nicholson now
wertraym: What the hell is this?
Rick_Fan_001: Its all visua
wertraym: NADA or talent search?
Rick_Fan_001: visual
Rick_Fan_001: Oh man, here come the Beatles
Rick_Fan_001: she loves you ya ya yah
Rick_Fan_001: these guys are good
Rick_Fan_001: best part of the show
Rick_Fan_001: george harrison guy is a dead ringer
Rick_Fan_001: no pun intended
Rick_Fan_001: I'll stay away from Lennon jokes
wertraym: What the fuck?
Rick_Fan_001: Im anonymous here
wertraym: This NADA has warped my fragile little mind.
Rick_Fan_001: dude, and youre not here
Rick_Fan_001: gotta save battery
Rick_Fan_001: and clap over my head
Rick_Fan_001: whole crowd is doing it
Rick_Fan_001: now were going to stand
wertraym: Oy.
Rick_Fan_001: and clap with beatles
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Rick_Fan_001: welcome speech finally
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Rick_Fan_001: NADA chairman Dale Willy is speaking about profitability
Rick_Fan_001: standby
wertraym: k
Rick_Fan_001: introducing NADA exec committee
Rick_Fan_001: about 10 to 15 away from Rick W
wertraym: Woo-HOO! More magic tricks!
Rick_Fan_001: Im missing those more and more
Rick_Fan_001: be back
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Rick_Fan_001: product info gathered under real world, daily conditions from dealers is valuable to manufacturers - it's free
Rick_Fan_001: quoting Bill Daily - NADA chair ( I need to check that though)
Rick_Fan_001: justifying role of dealers
Rick_Fan_001: should be partners with manufacturers
Rick_Fan_001: not just when there are slow selling cars
Rick_Fan_001: but before cars get off the drawing boards
Rick_Fan_001: car mfgrs are not always fair to all dealers
Rick_Fan_001: dealers should be treated as partners in govt affairs
Rick_Fan_001: help shape legislation
wertraym: Well, that would make sense if dealers could keep their big mouths shut about product planning
wertraym: Yes, dealers should do EVERYTHING — except, you know, sell cars.
Rick_Fan_001: legislators have found that NADA fills a valuable spot between mfgrs, govt and consumers
wertraym: blah, blah, blah...
Rick_Fan_001: NADA understands and can communicate realistic remedies for legislation on behalf of consumers and auto makers
wertraym: NADA=greatest thing since sliced bread
Rick_Fan_001: fed govt officials are here to talk to regulators one on one
Rick_Fan_001: its the chairman of NADA ... need to get his name checked
Rick_Fan_001: we the deales are the point where teh consumers, automakers, and congress interesect. we're uniquiely qualified to unite these sectors
Rick_Fan_001: our role will become even more critical over the next 100 years
Rick_Fan_001: no one means more to the future than we do
wertraym: haha
Rick_Fan_001: its a big responsibiltiy and we;re up to the task
Rick_Fan_001: standing up now
wertraym: Yes — no one means more to the future of cars than NADA
Rick_Fan_001: ok, next speakinger coming up
Rick_Fan_001: theme this year is 'focus on profitability'
Rick_Fan_001: 700 exhibitors
Rick_Fan_001: 5 halls
Rick_Fan_001: 40 workshop topics
Rick_Fan_001: 145 work sessions
Rick_Fan_001: half the speakers are new this year
Rick_Fan_001: acn get workshop certificates online for attending 4 or more workshops
Rick_Fan_001: 35 countries
Rick_Fan_001: 1500 foreign attendees
Rick_Fan_001: NADA goes back to New Orleans next year
Rick_Fan_001: first time since Katrina
Rick_Fan_001: video of 2008 convention highlights being shown
Rick_Fan_001: Rick coming up soon
Rick_Fan_001: Time Magzine Dealer of the Year award too
Rick_Fan_001: and Jay Leno
Rick_Fan_001: Dale Willar is speaking
Rick_Fan_001: introducing Rick
Rick_Fan_001: Dale Willard is introducing Rick Wagoner
Rick_Fan_001: Wishing GM a 100 year happy birthday
Rick_Fan_001: video highlights of GM
Rick_Fan_001: history
Rick_Fan_001: GM design defines an era
Rick_Fan_001: tech firsts
Rick_Fan_001: getting closer
Rick_Fan_001: today is Rick's Birthday
Rick_Fan_001: he is being introduced still
Rick_Fan_001: youngest CEO in GM history
Rick_Fan_001: rick is on stage
Rick_Fan_001: great to be here
Rick_Fan_001: on his birthday
Rick_Fan_001: laughter
Rick_Fan_001: he's been to NADA every year since 2004
Rick_Fan_001: since he came back stateside
wertraym: Happy Birthday Rick!
Rick_Fan_001: yep
wertraym: Happy Birthday GM!
wertraym: Will they have a big cake?
Rick_Fan_001: rick did a keynote here back in 2001
Rick_Fan_001: dealers and OEMs need to work together - predicted rate of change would accelerate
Rick_Fan_001: its even more than he imagined
Rick_Fan_001: pretty incredible to consider all the challenges faced over the past 7 years, like 9/11
Rick_Fan_001: like 100/barrell oil
Rick_Fan_001: bankruptcy from suppliiers
Rick_Fan_001: economoic challenges
Rick_Fan_001: runaway health care inflation
Rick_Fan_001: dealer challenges, like profitability and industry consolidation
Rick_Fan_001: talked about dealers and OEMs working together
Rick_Fan_001: example: automotive youth education program
Rick_Fan_001: Jack Smith proposed it
Rick_Fan_001: OEMs and dealers should work together to create an apprentice program for service techs
wertraym: OMG! This is like, riveting and stuff...
Rick_Fan_001: that's what Jack Smith proposed
wertraym: Yes, OEM's should work by themselves to do the dealers job for them
Rick_Fan_001: hey - its an example of OEMs and Dealers working closely together
Rick_Fan_001: 4,500 dealers are participing...impacted 13,000 lives of skilled auto techs
wertraym: The dealers should bear the ability to intervene in the decisions of the automaker and yet take on none of the responsibilities.
Rick_Fan_001: ongoing consolidation of dealers is next topic
wertraym: Oh good
Rick_Fan_001: has to be a mutual decision between OEMs and dealers...deales leaving the industry should be able to leave with dignity
wertraym: And how they'd rather all die of gonorrhea and rot in hell than do it?
wertraym: ha!
wertraym: Dignity?
wertraym: That which they've never provided to customers they now want?
Rick_Fan_001: find mutually agreeable ways to do this
Rick_Fan_001: that must happen
Rick_Fan_001: justifying role of dealers
Rick_Fan_001: should be partners with manufacturers
Rick_Fan_001: not just when there are slow selling cars
Rick_Fan_001: but before cars get off the drawing boards
Rick_Fan_001: car mfgrs are not always fair to all dealers
Rick_Fan_001: dealers should be treated as partners in govt affairs
Rick_Fan_001: help shape legislation
wertraym: Well, that would make sense if dealers could keep their big mouths shut about product planning
wertraym: Yes, dealers should do EVERYTHING — except, you know, sell cars.
Rick_Fan_001: legislators have found that NADA fills a valuable spot between mfgrs, govt and consumers
wertraym: blah, blah, blah...
Rick_Fan_001: NADA understands and can communicate realistic remedies for legislation on behalf of consumers and auto makers
wertraym: NADA=greatest thing since sliced bread
Rick_Fan_001: fed govt officials are here to talk to regulators one on one
Rick_Fan_001: its the chairman of NADA ... need to get his name checked
Rick_Fan_001: we the deales are the point where teh consumers, automakers, and congress interesect. we're uniquiely qualified to unite these sectors
Rick_Fan_001: our role will become even more critical over the next 100 years
Rick_Fan_001: no one means more to the future than we do
wertraym: haha
Rick_Fan_001: its a big responsibiltiy and we;re up to the task
Rick_Fan_001: standing up now
wertraym: Yes — no one means more to the future of cars than NADA
Rick_Fan_001: ok, next speakinger coming up
Rick_Fan_001: theme this year is 'focus on profitability'
Rick_Fan_001: new fuel legislation was a good example of join NADA cooperation with OEMs
Rick_Fan_001: NADA played a key role
Rick_Fan_001: big warning on the hurdles that need to be overcome by 2020
Rick_Fan_001: work reminds him of a story of a cowboy that went before St. Peter
Rick_Fan_001: St Peter asked if he had done something of particular merit
wertraym: BTW — this is all live on site right now
Rick_Fan_001: cowboy : bikers were harrassing a girl and he said dont do that. cowboy knocked over a bkier bike
Rick_Fan_001: St peter said when did this happen?
Rick_Fan_001: cowboy - a few minutes ago
Rick_Fan_001: unlike cowboy, we want to live to tell the tale
Rick_Fan_001: bring succsfully to maket a new range of propulsion technologies
Rick_Fan_001: focus on gas friendly to gas free
Rick_Fan_001: like Volt
Rick_Fan_001: as we bring these new technologies to market, we'll change the way people think about transportation
wertraym: From gas friendly to gas free?
wertraym: From Beano to gas free?
Rick_Fan_001: this is a huge assignemnt as we work together to bring the technoglogy to market and sell and aservice it
Rick_Fan_001: 2 areas of big focus to work together on NOW
Rick_Fan_001: NADA and OEMs
Rick_Fan_001: 1) first workt together for right regulatory environment to reduce growth of US oil consumption and greenhouse gas emissions
Rick_Fan_001: some states want to go beyond federal regulation
Rick_Fan_001: but the fact is we should be focuseed on national standards, not states
Rick_Fan_001: it would fragment our efforts to achieve end results
wertraym: God forbid we'd fragment it
Rick_Fan_001: in short we need to work together to educate state and local lawmakers on the important of tough national satandards
wertraym: God forbid some states would want to get SOME legislation enacted
Rick_Fan_001: 2) reduce oil consumption by fostering creation of infracsturure needed to implement alt energy solutions
Rick_Fan_001: charging stations
Rick_Fan_001: hydrogen refueling infrastructure
Rick_Fan_001: today we need ethanol pumps to support flex fuel vehicles
Rick_Fan_001: but its hard to make this happen
Rick_Fan_001: take E85...we've taken the chicken out of the chicken and egg problem
wertraym: I can't drive E85!
Rick_Fan_001: we're making flex fuel
wertraym: Flex your fuel, GM!
Rick_Fan_001: E85 is ramping up, but we're doing a lousy job making E85 available to consumers
Rick_Fan_001: despite best efforts
Rick_Fan_001: dealers and OEMs need to workt togehter to push E85 acceptance
Rick_Fan_001: wrapping it up now
Rick_Fan_001: appealing for dealers and OEMs to continue to work hard at working together
wertraym: Dealers and OEM's, living together in perfect harmony!
wertraym: Like fucking Ebony and Ivory
Rick_Fan_001: we have the ability to solve great problems
Rick_Fan_001: domestic mfgrs have been restructuring and are better able to compete globally
Rick_Fan_001: we stand at a time of great dynamic change
Rick_Fan_001: success comes to those who lead
Rick_Fan_001: looks forward to working with dealers in the days and years to come
Rick_Fan_001: thats it
wertraym: Success comes to those who lead?
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wertraym: So does that mean Toyota is succeeding?
wertraym: Crap, now we'll never know.

Rick, you've got the G8 coming and hitting shores now, Camaro coming next year — what other options are being discussed for the Commodore — excuse me — Zeta platform?

I can think of at least two other potential products that have been and remain on the table. One has a reasonably high likelihood, and one maybe not as high likelihood...due to fuel economy concerns.

Not at this time. I think the general discussion going forward...as we look at these products will be challenging ourselves whether we need an eight in these products going forward. Hey, when you develop products...we've got to hold ourselves to a higher standard on these. I saw some early data...not sure if it was just a region of the country...but it definitely skewed towards the four's. That's a big change from the old generation.

That's not to say the Camaro...for younger buyers maybe a six or a turbo-charged six may hold a higher cache...

Electric Avenue
The Convergence of Electronic and Automotive Technologies

Remarks by Rick Wagoner
General Motors Chairman and Chief Executive Officer
to the 2008 Consumer Electronics Show

The Venetian
Las Vegas, Nevada

• Thank you, Gary [Shapiro], for your very kind introduction.

• As Gary said, GM is the first automaker in 41 years to host a keynote presentation at CES... let me tell you, this is a terrific honor for us.

• At GM, we have a long history of automotive firsts... from the electric starter and automatic transmission... to the catalytic converter and OnStar... to the spectacular concept car that just delivered me onstage... the Chevy Volt!

• Those of you who know the Volt - which GM introduced in Detroit at the North American International Auto Show almost exactly one year ago - know that it's a lot more than just a great looking car.

• The Volt is a powerful example of beauty and brains... because as good as it looks on the outside, it's the technology under the hood that's truly revolutionary.

• We're now over a year into our production engineering for the Volt... and we're moving as fast as we can to bring it to market.

• You may have seen the Volt chassis at the GM display in the Grand Lobby of the Convention Center the past two days. The car you see onstage will join that Chassis starting tomorrow... so, please stop by and take a closer look.

• I'll have a lot more to say about the Volt... especially the technology that drives it... later in my presentation.

• For now, let me just say that we at GM are excited about being the first automaker to take the stage at the world's biggest and most impressive technology conference.

• Let me tell you why we're here.

• The electronics industry has undergone unbelievable change since Lee DeForest started it all with the invention of the first electronic amplifier, way back in 1907... one year before the founding of General Motors, by the way.

• It's good to know that, when GM hits 100 later this year, we'll be in the company of others who, like us, refuse to grow old.

• The electronics industry stays young by continually reinventing itself.

• From DeForest's "audion," as it was called, and vacuum tubes of every shape and size... to transistors and integrated circuits... semiconductors and supercomputers... Internet and wireless communications... the breakthroughs keep coming.

• At GM, we intend to stay young by reinventing the automobile... with a lot of that based on electronics.

• The fact is, the auto and electronics industries have traveled similar paths for a long time... sometimes arm-in-arm.

• Way back in 1912, GM introduced the industry's first electric starter... which replaced the old hand-crank starters you've all seen on the History Channel.

• We don't even think about electric starters today, but they truly revolutionized the automobile.

• And it was the first of many electronic innovations that transformed automobiles from rough-and-tumble horseless carriages... to the sophisticated machines that we know and drive today.

• In fact, if the automobile were invented today, I'm pretty sure it would debut right here at CES... because more and more, that's exactly what today's cars and trucks are - highly sophisticated consumer electronics.

• The electronics content of the typical automobile has increased by almost 50 percent over just the last five years.

• And you can't think about new consumer electronics for long without imagining what automotive applications they might have.

• At the same time, it's hard to think about today's cars without thinking about the electronics they already incorporate... and not just radios, DVD players, GPS devices, and navigation systems... but also the things you can't see... like airbags, antilock brakes, engine control modules, and the latest major safety breakthrough, electronic stability control, like GM's StabiliTrak system.

• So the auto and electronics industries go way back. At GM, we think we'll be even closer going forward.

• For almost 100 years, GM has been in the business of automotive innovation. Now, our intent is to bring you the future of transportation.

• We'll do this by working more closely than ever with the consumer electronics industry... using electronics to reinvent the automobile... and we can think of no better place than right here at the Consumer Electronics Show, to tell you about some of the exciting things we have going on at GM.

* * * * * * *

• If the clearest intersection between the automobile and consumer electronics used to be the radio, today it's telematics... and in GM's case, that means OnStar... the unquestioned leader in telematics today.

• By the way, that leadership would not have been possible without the support and partnership of a lot of you here today.

• Over the past 12 years, your passion and expertise have helped bring OnStar to life... and we look forward to continuing and growing that kind of mutually beneficial relationship with you in the years to come.

• We're always open to your ideas to bring electronics to the auto industry... in fact, here with me today are a number of GM's top technology experts. They're sitting in the front row... and you're going to see a number of them on video during my remarks.

• They'll also be here in the room when I finish up, so please seek them out if you have questions or ideas.

• But back to OnStar, its value to our customers is very clear: it provides safety, security, and "peace of mind" through a suite of OnStar-exclusive features... all of which can be accessed through a powerfully simple user interface.

• On average, OnStar is now interacting with about 85,000 subscribers per day.

• In an average month, we respond to about...

• 1, 750 automatic crash notifications.

• 11,000 calls for emergency service.

• and 35,000 roadside assistance calls.

• "Good Samaritan" subscribers call for help on behalf of their fellow motorists about 6,000 times a month.

• OnStar also handles about 29 million minutes of hands-free calling per month... and responds to about 800 stolen vehicle location requests.

• To date, OnStar has had more than 82 million subscriber interactions... one interaction about every two seconds.

• There are thousands of examples of OnStar proving itself as a life-saving technology... here's just one.

VIDEO: OnStar commercial

• Clearly, OnStar helps us establish stronger relationships with our customers.

• We hear from many subscribers like the couple in the video... who insist that every future car they purchase must have the safety and security features that only OnStar provides.

• OnStar has led to a number of unexpected benefits for GM, as well... like using the system's diagnostics feature to validate our vehicles... like driving down warranty costs... like leading to more than 400 GM patent applications so far.

• One huge benefit that OnStar has brought to GM... and again, one we really didn't anticipate... has been learning from the faster engineering and development cycles of the consumer electronics industry.

• In fact, our OnStar technology platform is about to roll out its eighth generation in just 12 years... which, as I suspect you all know, is somewhat faster than our normal automotive development cycle.

• But probably the greatest thing about OnStar is what's great about electronics... we keep finding new ways to take advantage of the technology. A good example is our "Automatic Crash Response" feature.

• When we started OnStar, the system alerted us if your airbag was deployed, we called your vehicle to see if you were ok, and directed emergency services to your exact location.

• We thought that was a pretty amazing use of technology way back in 1996.

• By the way, we've responded to nearly 1 million emergency situations since then.

• And OnStar's service is not dependent on a cell phone or other dashboard device that could be damaged in a crash. Our system is imbedded in the vehicle... is very well protected... and works following even the most severe collisions.

• But as time went on, we worked with emergency responders and the Centers for Disease Control and Prevention, who told us that if we could figure out a way to tell them how serious a crash was before they got to the scene, they could prepare for what they were likely to find.

• So, working with a key supplier, we developed a more sophisticated system that tells us not only when an airbag deploys, but also what part of the vehicle was hit, how hard it was hit, how many times it was hit, even whether the vehicle rolled over.

• And now the OnStar advisor can convey all that information to the emergency responders as they travel to the scene... improving the chances of a better outcome for those involved.

• Another great OnStar feature is Turn-by-Turn Navigation, which lets drivers - even back seat drivers - ask for directions from a live advisor, who downloads complete step-by-step directions to your car. The advisor then signs off, and OnStar directs you to your destination.

• In keeping with OnStar's guiding principle, we've made the service very easy to use. There are no DVDs to mess with, no maps to read, no hand-held devices to juggle. Everything you need is already in your car.

• Push the blue OnStar button, get directions, and you're on your way.

• I have to say, all this goes way beyond anything I ever thought we'd ever do at GM - I mean, we're not just saving lives... we're actually saving marriages.

• One more OnStar feature I'll mention... our newest one... is what we call "Stolen Vehicle Slowdown," which we'll make available starting later this year on nearly 1.7 million 2009 model-year cars and trucks.

• Stolen Vehicle Slowdown is an enhancement to OnStar's Stolen Vehicle Location Assistance, which uses GPS technology to pinpoint the location of stolen vehicles... which we've done more than 30,000 times.

• Well, sometimes, when the police find the vehicle, the person who stole it is still in it... and doesn't want to get caught. Imagine that!

• Well, the bad guy takes off... the police give chase... and all too often, the situation ends tragically. In fact, there are about 30,000 police chases a year in the U.S... which lead to about 300 crash-related deaths.

• At OnStar, we partnered with law enforcement to address this problem... by designing a service that works for everyone... well, everyone except the car thief.

• It all begins with OnStar pinpointing the location of a stolen vehicle and providing that information to the police.

• Then, once the police have a clear line of sight of the stolen vehicle, they can request that OnStar send a signal to slow the vehicle down... which we do by gradually reducing power to the engine.

• Our research shows that about 95 percent of our OnStar subscribers will want Stolen Vehicle Slowdown on their cars and trucks.

• And if they decide later that they don't want it for any reason, they can opt out at any time without affecting the rest of their OnStar services.

• So, what else is new at OnStar? What do we have coming?

• Take a look at some of the technologies we have on the horizon.

VIDEO: New and upcoming OnStar features.

• These applications, and a lot more, are possible... and not just in the U.S. and Canada, where our primary focus has been to date... but around the world.

• In November, we signed an agreement to bring OnStar to China, which represents a great opportunity to offer the benefits of OnStar to a huge new audience.

• And I suspect China's not the last place OnStar will be going. More to come in that department.

• In short, OnStar has been, and continues to be, more than a terrific business for GM, and our customers... it's been a massive learning experience for us, and another great example of where and how the auto and electronics industries intersect today.

• Now, where will they intersect tomorrow?

* * * * * * *

• If OnStar and telematics are connecting cars to the outside world... then one of the next big developments in automotive electronics is connecting cars with other cars. Connecting them electronically, that is... to keep them from connecting physically.

• In recent years, advances in electronics have allowed for technologies like anti-lock brakes, traction control, electronic stability control, and obstacle detection.

• At GM, we're working our way up this advanced technology ladder to help our drivers avoid accidents and improve traffic flow.

• In fact, we're now offering a Lane Departure Warning System and a blind-spot alert system on the 2008 Buick Lucerne and 2008 Cadillac STS and DTS.

• We're preparing to take it even further through the use of GPS and advanced transponder technology that we believe will revolutionize the driving experience.

• We call it V2V, or vehicle-to-vehicle communications.

• V2V starts with collision avoidance and builds from there. And the key difference between V2V and sensor-based "vision" systems is in the electronic communications.

• Today's vision systems send out a signal that determines the speed and location of the vehicle ahead of you, and directs your car accordingly. It's excellent technology.

• These next-generation systems promise to be considerably better... because they'll be significantly less costly, yes... but more importantly, because they'll use transponders to "talk" with other vehicles within a quarter mile of your vehicle.

• So, if six cars ahead, somebody in a transponder-equipped vehicle steps on the brakes... in your lane or the lanes on either side of you... your transponder will immediately know that, and start slowing down your car before you're even aware you may need to stop.

• This type of technology, unheard of 15 years ago, has the potential to minimize traffic jams and, more importantly, greatly reduce highway accidents and fatalities... with minimal or possibly even no roadway infrastructure required. And it's progressing.

• This past November, for example, the Defense Advanced Research Projects Agency, or DARPA, sponsored a contest for "sophisticated autonomous vehicles." Translation: they held a race for robot cars.

• Well... 37 years ago, GM built the lunar rover for the Apollo Space program. Why not try something a little more down to earth?

• And so, we teamed up with Carnegie Mellon University, Caterpillar, Continental, and others to outfit and race what has to be the most tricked-out Chevy Tahoe this side of... well, this side of the moon.

• The Carnegie Mellon Team named the Tahoe "Boss," after Charles "Boss" Kettering, the first head of GM's research division... who personally invented the electric self starter I spoke of earlier.

• Let's see how the modern-day "Boss" made out.

VIDEO: DARPA Urban Challenge.

• Some pretty exciting possibilities there. I think Boss Kettering would be proud.

• So, just to put this in perspective, autonomous driving means that, some day, you could do your e-mail, eat breakfast, apply your make-up, read the newspaper, watch a video... all while commuting to work.

• In other words, you could do all the things you do right now while commuting to work... except you could do it safely!

• It's still a ways off... but the technology demonstrated by "Boss" and V2V represents the latest example of electronics driving big advances in autos.

• Incidentally, we couldn't fit Boss into the room this afternoon, but we did get him into Vegas... and you can see him tomorrow afternoon and Thursday in the Gold Lot at the Las Vegas Convention Center.

* * * * * * *

• So, lots of work today with electronics, lots of work for tomorrow, and some big ideas for even further out.

• Now, let me turn to an issue of more immediate concern... especially with oil hitting $100 a barrel last week... and that's the role of the automobile in energy security and environmental protection... and the role that electronics, and electricity, can play in reinventing the automobile to address these concerns.

• As we look at the global energy and environmental picture today and consider the future of the automobile, one fact stands out above all others... the auto industry can no longer rely almost exclusively on oil to supply the world's future automotive energy requirements.

• This matter is getting plenty of attention here in the U.S. recently... but make no mistake... this is a global issue.

• Energy supply, sustainable growth, CO2 emissions, fuel economy... these are topics of concern all around the world... as I have learned firsthand in discussions with national and city leaders from Mumbai and Sao Paulo, to Shanghai and Washington.

• For the global auto industry, it is critical - both as a business necessity, and an obligation to society - that we develop alternative sources of propulsion to meet the world's demand for our products... a demand that is growing at a very rapid rate.

• Consider that 2007 was the sixth consecutive year of record sales for the global auto industry - about 70 million units worldwide.

• In the next five years, we project that global sales will grow to 85 million units a year... and that 80 percent of that increase... 12 million new cars and trucks... will be in developing countries like China and India.

• This clearly shows the enormous opportunity our industry has... but also highlights how important it is that we address the challenge of sustainability.

• And as we've worked to address this, it's become very clear to us that no one solution is going to be best for every part of the world.

• So our strategy at GM is simple: use advanced technology to offer a broad range of cleaner and more efficient vehicles, powered by different sources of energy, to best meet the needs of local consumers all around the world.

* * * * * * *

• How do we do this?

• Well, first I should note that a lot of the recent big improvements in internal combustion engines, both gas and diesel, rely heavily on advances in electronics... things like direct injection...variable valve timing... cylinder deactivation... and others.

• Beyond improvements to conventional engines, a huge opportunity to reduce the growth in oil consumption, reduce U.S. oil imports, and reduce greenhouse gas emissions lies in the fuel used by our cars and trucks... and it's increasingly clear that ethanol offers tremendous potential in this regard, over a surprisingly short timeframe.

• Why?

• Well, in part, because there are already so many Flex-fuel vehicles on the road right now that could be running on ethanol, if it were more readily available.

• At GM, alone, we have more than 2.5 million Flex-fuel vehicles on the road just in the U.S... and we have plans to expand our Flex-fuel offerings to 50 percent of our production by 2012.

• Incidentally, in 2008, we'll offer 25 Flex-fuel models around the world, and produce more than one million new Flex-fuel vehicles globally.

• Now, if all of the Flex-fuel vehicles that GM, Ford, and Chrysler have already built in the U.S., plus those that we have committed to build over the next 10 years, were to run on E-85, we could displace 22 billion gallons of gasoline annually. That's billion with a "B."

• And if all manufacturers in the U.S. made that same commitment, we could save 37 billion gallons of gasoline annually.

• That's more than four times the oil savings that the new energy legislation will achieve... and, very importantly, it would actually reduce America's oil consumption by more than 10 percent versus today's levels... and CO2 emissions, as well.

• How do we accomplish this? Three straightforward steps:

• First, continue to grow ethanol production - and we're pleased to see that the new energy legislation includes provisions for this.

• Second, invest heavily in the development of advanced "cellulosic" ethanol, which can be made from fast-growing, non-food plants like switchgrass... or even from agricultural and municipal waste.

• And third, increase the woefully low number of E-85 pumps in our nation's gas stations. Right now, there are about 170,000 gas stations in the U.S., but less than 1 percent of them offer E-85 pumps.

* * * * * * *

• Another technology that's receiving a lot of attention these days is the gas-electric hybrid.

• It's not very well known outside of Detroit, but at GM, we've actually been in the hybrid business now for five years. And we didn't start small. In fact, we started very big.

• Our thinking was simple: you save a lot more gasoline when you improve the fuel economy of a big bus versus a small car. And so we developed the industry's first two-mode hybrid... which is still the most advanced system in the business.

• In 2003, we began supplying our two-mode hybrids to transit systems in North America and Europe. In fact, I'm pleased to announce today that we will deliver our 1,000th hybrid bus right here in Las Vegas later this month.

• More recently, we've been aggressively expanding our hybrid presence into passenger vehicles.

• By the end of this year, GM will be selling eight different hybrid models in the U.S. In fact, we'll introduce 16 new hybrid vehicles over the next four years - an average of one every three months.

• We're particularly excited about two hybrids we've just recently introduced... the Chevrolet Tahoe and GMC Yukon hybrids... which use the two-mode hybrid system we developed for transit buses.

• Why?

• Because they can get 50 percent better city fuel economy than their gasoline counterparts... which already get the best fuel economy in their class.

• Hard to believe, but Tahoe and Yukon two-modes can get the same city fuel economy as the 2008 Toyota Camry with a base four-cylinder engine. But the Tahoe seats eight, churns out 332 horsepower, and can tow up to 6,200 pounds.

• This performance earned the Tahoe two-mode the "Green Car of the Year" award at the Los Angeles Auto Show last November.

• And even the author of hybridcarblog.com... no friend of SUVs he... noted in a recent post that the Tahoe two-mode is as fuel-efficient as the tiny BMW Mini Cooper.

• Another new hybrid we're very excited about is our next-generation Saturn VUE Green Line. It'll get an impressive 27 percent overall fuel economy improvement, with a hybrid price premium of less than $2,000.

• The VUE hybrid continues to prove that you don't have to be rich to be green.

• And beyond that, we've already announced our intention to build a "plug-in" version of our Saturn VUE hybrid.

• Our team is hard at work to get this technology to market as soon as we can. Expect an announcement on the VUE plug-in hybrid very soon.

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• Looking further out, we see tremendous opportunities with hydrogen fuel-cell electric vehicles.

• Fuel cells have been used to power spacecraft since the 1960s, and today there's a huge effort to develop fuel cells that are strong enough, and small enough, and economical enough, to power today's modern automobiles.

• Since 2002, when we introduced a groundbreaking fuel-cell concept vehicle called AUTOnomy, we've been making steady progress toward our goal of developing fuel-cell vehicles for real-world customers.

• Our latest fuel cell concept, the Chevy Sequel, is powered by our fourth-generation fuel cell stack. It's simpler, more efficient, and smaller than previous generations... yet delivers 25 percent more power.

• Last spring, Sequel made history when we drove it 300 miles on a single tank of hydrogen, in real-world conditions, from our fuel-cell research facility near Rochester to Westchester County, New York.

• And the hydrogen we used was derived from hydro power at Niagara Falls... a clean, renewable source... so this was a true zero-emissions run.

• Today, we're in the process of putting Sequel's technology on the street... by building it into our Chevy Equinox SUVs. You may have seen a few of these cruising the strip over the last several days.

• The Equinox Fuel Cell has a 150 mile range, refuels in 5-8 minutes, and is a full-fledged electrically-driven ZEV... zero emissions vehicle.

• In the next few weeks, we'll begin delivering more than 100 of these vehicles to customers in Southern California and the East Coast. Together, they'll constitute the world's largest fuel-cell test fleet.

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• Now, all of these technologies... more fuel-efficient conventional engines, bio-fuels, gas-electric hybrids, and hydrogen fuel cells... are important, and all are possible, thanks largely to advanced electronics. But what's really exciting is when we bring them all together... with concepts like the Chevy Volt onstage with me now.

• In fact, fair to say that no concept in my GM career has created more excitement than the Chevy Volt... here in the U.S., and in fact, all around the world.

• Volt is our first demonstration of a new family of electrically driven propulsion systems that we call E-Flex.

• The "E" in E-Flex stands for "electric," because all E-Flex vehicles will be driven by electricity... and E-Flex is "flexible," because it is easily adapted to different sources of electricity.

• The electricity used to energize E-Flex vehicles can come directly from the power grid... or from a small motor running on ethanol or gasoline, like the Chevy Volt... or from a small diesel engine, like the Opel Flextreme concept we unveiled in Frankfurt in September... or from a hydrogen fuel cell, like the Volt concept we showed in Shanghai last April.

• So, how does E-Flex work?

• Well, like so many other electronic devices, everything begins with the battery. Take the Chevy Volt.

• Running off the battery, which customers can charge in a standard electrical outlet, the Volt operates as a traditional battery-electric vehicle, with a driving range of about 40 miles.

• And when you consider that three-quarters of American drivers travel less than 40 miles in their daily commute... clearly, Volt will have a huge impact on America's petroleum dependence.

• And if the driver of a Volt needs to travel beyond 40 miles, the engine/generator kicks in to supply the electricity to keep the vehicle moving, as well as recharge the battery.

• This allows the vehicle to drive several hundred additional miles... still with a composite fuel economy of around 150 miles per gallon.

• The whole of General Motors is behind this project. In fact, we have over 200 engineers working on the Volt alone, and another 400 on E-Flex and its various ancillary programs. Here are two of our team leaders.

VIDEO: The promise of electrically driven vehicles.

• The key to getting Volt on the road is advanced lithium-ion battery technology.

• Our internal tests have shown that individual Lithium Ion cells, scaled-up to a pack level, will deliver the required power and range.

• We've run prototype packs through a number of tests since last fall... including some pretty severe ones... and the results to date are very encouraging.

• The next step is to begin testing the battery packs in drivable cars... which we will begin shortly.

• Importantly, the vehicle side of the Volt program is being engineered in parallel with battery development. (In fact, I saw the latest and, I suspect, just about final major iteration of the production Volt design theme just before Christmas.)

• Typically, we develop new technology - like the battery and propulsion systems - before we kick-off a production-vehicle program. But, the Volt is being developed with the maximum sense of urgency we can muster.

• In fact, the Volt is just the beginning of our commitment to E-Flex and electrically driven vehicles... and today, I'm very pleased to introduce the next exciting step in our E-Flex development program... the world premier of GM's latest fuel-cell concept vehicle... and the first vehicle introduction ever at CES... ladies and gentlemen... the Cadillac Provoq!

• The Cadillac Provoq is the latest example of GM's E-Flex propulsion system... combining our new fifth-generation fuel cell with a lithium-ion battery... to produce an electrically driven vehicle that uses no petroleum, and has no emission other than water.

• The Provoq is the first vehicle to extend the E-Flex propulsion system beyond our small-car architecture... to a new, global, luxury cross-over architecture.

• The concept's fifth-generation fuel cell technology is half the size of its predecessor, yet is able to produce more power and performance.

• The concept will drive 300 miles on a single fill of hydrogen. Hydrogen stored below the cargo floor will mix with oxygen to generate electricity. A lithium-ion battery pack will store additional electrical energy, and also provide peak power for enhanced performance.

• The electricity generated by the fuel cell will be distributed fore and aft to give the Provoq all-wheel-drive traction and great driving dynamics.

• It'll have a top speed of 100 mph... and its 0-60 speed of 8.5 seconds is more than 30 percent faster than our previous-generation fuel cell system. And with instantaneous torque to the wheels, it'll feel even faster.

• At its core, Cadillac is all about luxury, design, and technology... so it's fitting that our premium brand should be propelled by the most advanced propulsion system in the industry.

• The Provoq signals GM's intent to lead the industry with advanced-propulsion technology... in many forms... across multiple brands... from Chevrolet... to Cadillac.

• In addition to its fuel cell and E-Flex advances, Provoq offers other exciting features which demonstrate that great style and environmentally conscious transportation can go hand in hand... supported by advances in electronics. Features like:

• A solar panel integrated into the roof to help power onboard accessories, such as interior lights and a high-performance audio system.

• An active front grille... with louvers that close at highway speed to enhance aerodynamics... and open at low speed to provide maximum cooling to the fuel cell stack.

• Both brake-by-wire and shift-by-wire technology... which minimize the concept's need for mechanical systems... reduce the vehicle's overall weight... and provide for greater interior storage space.

• Left and right, fender-mounted charging ports to allow for overnight, plug-in charging of the lithium-ion battery pack.

• And, very importantly, the fuel cell powertrain does not intrude on the passenger or cargo room. The Provoq seats five and incorporates all the comfort, convenience, and infotainment features that Cadillac customers demand.

• Ladies and gentlemen... the Cadillac Provoq represents another important step in GM's commitment to energy-wise, environmentally conscious, electrically driven vehicles... and the promise of truly sustainable transportation.

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• So, to wrap up...

• OnStar, V2V, autonomous driving, advanced propulsion and electrically driven vehicles... all point to a convergence of the auto and electronics industries that is literally transforming the automobile... and the global auto industry.

• As we face the reality of rapidly growing global demand for our products... in light of society's legitimate energy and environmental concerns... there can be no doubt that electronics will play an even bigger role in our industry's second century, than it did in our first.

• And when we connect the dots...

• from mechanically driven, to electrically driven...

• energized by petroleum, to energized by electricity...

• powered by internal combustion, to powered by electric motors...

• mechanically and hydraulically controlled, to electronically and digitally controlled...

• operated in isolation, to fully connected...

• we at GM believe we have the ability to create cars and trucks that are cleaner, safer, "smarter," and more exciting than ever before.

• We believe the future of the automobile is extraordinarily bright... and truly electronic.

• And we look forward to claiming that future with the consumer electronics industry... and with all of you.

• Thank you for having me here today... enjoy the rest of the show!

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