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

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.

Exploding batteries: Remember the flaming plug-in Prius from a few weeks ago? No, that wasn't a manufacturer-sanctioned ride, but it still plainly shows the dangers inherent in releasing unproven technology. The fact that GM has yet to name a supplier for Volt's lithium-ion battery pack (though we hear it'll be either Continental or CPI) is another red flag for the power source.

Embarrassing show mishaps: GM needs a win...and they need it to be a clean win, both on the stage and showroom floor. No panels falling off, stalls, massive oil leaks, fires, or collapsing spokes-robots on stage. Asking engineers to work 18-hour days in an effort to ready bleeding-edge technology for debut at a huge, public event, all while holding their jobs over their heads, is a recipe for disaster.

Gas price crashes: Let's not forget November is rapidly creeping up on us. This is an election year. Don't be terribly surprised if gas prices suddenly fall to earth in a magical, ballot-influencing Bullworth-like fashion in September. The result would be GM touting Volt's amazing fuel economy at the same time Tahoes again start flying off dealer lots.

Are any of these outcomes probable? No. Possible? Yes. [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]

Most of Phelan's arguments center around the drawbacks of shutting Hummer down. Thing is, shuttering the brand has always seemed the least-likely scenario. Instead, GM would be better off selling the brand to an outside investor or automaker who could then supply Hummer products to the markets that demanded them — including the U.S., should they choose to do so. Hummer dealers would mostly remain intact, owners would retain parts and service availability, and the General could post a nice chunk of cash to its books while ridding itself of a brand liability and excess manufacturing capacity. What's not to like here?

Individual donors that stand out include GM CEO Rick Wagoner, who gave to Romney, and Roger Penske of Penske Corp., who gave to Giuliani. The good thing for all involved is that, after the primaries, everyone can make sure their company gives enough to the remaining candidates to make sure no one feels left out. [Automotive News]

One of our favorite Simpsons was when Mr. Burns got the one billion dollar bill and him, Smithers and Homer flee to Cuba. They hook up with Castro who wants to have a look at the filthy lucre. Mr. Burns isn't sure, but Homer tells him, "C'mon Mr. Burns — you can trust Castro." So, Burnsey hands Fidel the bill and the great Cuban revolutionary immediately puts it in his pocket. Mr. Burns asks for it back, to which Castro responds, "What bill?" And now the General is pulling the same thing. What Saturn EV-1? We don't know what Ed Begley Jr. is so upset about? Ladies and germs, may we present to you the Chevy Volt concept car. Totally electric, yet complete with a turbo-charged one-banger to produce juice for the batteries after they go dry. This gives the Volt a range of 640 miles. Not quite up to the awesome technology of Audi's 800-mile twin-turbo diesel A8, but hey - greenish celebs will take it. Seats five, too. – Jonny Lieberman

GM to unveil Volt electric concept car [AP]

Related:
DIY Electron-Heads in Marin [Internal]

Kicking off the 100th Anniversary of the Los Angeles Auto Show, hizzoner Antonio Villaraigosa asked Rapping Rick to move GM to Los Angeles. Rick said no. More importantly, Wagoner assured the booze hounds assembled journalists that General Motors is committed to "energy diversity." And that means, gasoline, E85, high-value (low-tech) hybrids, "advanced" two-mode hybrids, plug-in hybrids and fully electric fuel cell vehicles. Edison, it turns out, was right. The brothers Stanley, wrong. In fact, in about seven minutes, Saturn will be debuting the VUE plug-in hybrid, a world first, that will provide "significantly higher fuel savings" than the massively advanced, though yet to be released, two-mode VUE. Go planet Earth!

In the latest installment of Farago's GM Death Watch, he lasers in on the skills of GM boss Richard Wagoner, specifically those of leadership. By taking the path of least resistance, Farago says — otherwise defined as serving too many masters other than his own gut — the CEO is doing no more than forestalling an inevitable cataclysm. And here we were thinking "forestalling" was a good thing.

GM Death Watch 45: In His Hands [The Truth About Cars]

Related:
More GM Death Watch [internal]