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A conversation with GM's Mark Reuss on MPG, aluminum and Corvettes

There was plenty to talk about when General Motors hosted its annual mid-December holiday media reception a few months ago. GM had just decided to pull its global Chevrolet brand out of major European markets, where Chevys have competed directly with GM Europe Opel and Vauxhall vehicles, and the US government had sold its last remaining shares of GM stock. But most important was the company's just-reshuffled leadership. Post-bankruptcy CEO Dan Akerson had announced that he would step aside and that 52-year-old Mary Barra would replace him on January 15. Not only would she be the first woman to lead a major automaker, she would also be GM's first engineer CEO since Bob Stempel in the early 1990s. "I look at 2013 and 2014, as the retooling of General Motors" - Mark Reuss Replacing her as executive VP for global product development (and purchasing and supply chain) would be 49-year-old Mark Reuss, who had served a stellar four years as North American president, and elevated to corporate president (from executive VP and CFO) would be 42-year-old Dan Amman. All three are relatively young auto enthusiasts who are liked and respected inside and outside the company, and their collective talents and experience are highly complementary. I've interviewed Barra and found her smart, personable and knowledgeable, though she carefully walks the corporate line in speaking and answering questions. I met and chatted with Ammann for the first time at that holiday reception, and he made a good first impression. But I've known Reuss for some time as a genuinely good guy and a highly capable and inspiring leader, and I believe he is exactly the right person for the global product responsibility once famously held by the outspoken, oft-controversial Bob Lutz. So I jumped at an opportunity to join a group interview of Reuss (with mostly business reporters) at the Detroit Auto Show in January. It was an interesting session of mostly good questions, which he answered with refreshing candor and humor. "I look at 2013 and 2014, as the retooling of General Motors," Reuss said. "We've taken down almost every plant in North America, converted and turned it this last year, and to do that with award-winning vehicles and pretty flawless launches is key. We have to keep the train rolling on great product, because the rest won't happen without the best product, period." A reporter asked whether GM was pushing big trucks, SUVs and Corvettes again because gas is cheap. "No," Reuss said.

How Chevy Silverado, GMC Sierra will take on the Ford F-150 profit machine

FORT WAYNE, Ind. — When General Motors engineers were developing the 2019 Chevrolet Silverado and GMC Sierra pickup trucks, some of them joined public tours of Ford's Dearborn, Mich., factory to watch aluminum-bodied F-Series trucks go down the assembly line. The redesign of the Ford F-Series trucks, launched in 2014, set a new standard for fuel economy and lightweight vehicle construction. But armed with stopwatches and trained eyes, the GM engineers believed they saw problems. "They had a real hard time getting those doors to fit," Tim Herrick, the executive chief engineer for GM truck programs, told Reuters. His team did more intelligence gathering. They bought and tore apart Ford F-Series doors sold as repair parts. Their conclusion: GM could cut weight in its trucks for a lower cost using doors made of a combination of aluminum and high-strength steel that could be thinner than standard steel, shaving off kilograms in the process. These pounds-and-pennies decisions will have major implications in the highest-stakes game going in Detroit: dominance in the world's most profitable vehicle market, the gasoline-fueled large pickup segment. What's more, GM is banking on strong sales of overhauled 2019 Silverados and GMC Sierras to fund its push into automated and electric vehicles — a business many investors see as the auto industry's long-term future. The risks are high given the hits automakers have taken from U.S. President Donald Trump's trade policies. Rising aluminum prices spurred by Trump's tariffs are driving up costs on the Ford's F-Series, while rising steel and aluminum prices likewise drag on GM results. GM also has a significant risk should the United States, Mexico and Canada fail to agree on a new NAFTA trade deal, given GM trucks built at its Silao, Mexico, factory could face a 25 percent tariff if NAFTA collapses. Major profit per truck Interviews with GM executives and a tour at its factory here in northwest Indiana provide a detailed look inside GM's plan for the most important vehicles in its global lineup. These big pickups are everything Tesla's Model 3 or Chevy's Bolt electric car is not. The mostly steel body is bolted to the truck's steel frame, rather than the one-piece body and frame electric vehicles. The majority of trucks will have a V-8 gasoline engine powering the rear wheels — like the classic GM cars of the 1950s. Some Silverados will have new four-cylinder engines, but there is no electric or hybrid offering as of now.

Ford Mustang Shelby GT350R named Road & Track Performance Car of the Year

With a 526-horsepower, 5.2-liter V8 that roars to 8,250 rpm, it's really hard to consider the 2016 Ford Shelby Mustang GT350R an underdog in any fight. However, the Shelby held the lowest as-tested price and was only middle of the pack in terms of power in Road & Track's 2016 Performance Car of the Year challenge. The 'Stang's numbers clearly didn't tell the whole story about the potent coupe because Ford's muscle car grabbed the title in this year's test. A model needs to be new or significantly updated to be eligible for the honor, and R&T found an impressive slate of eight candidates this year. The challengers included the Bentley Continental GT3-R, Cadillac ATS-V Coupe, Chevrolet Corvette Z06, Dodge Viper ACR, Mercedes-AMG GT S, and Porsche Cayman GT4. The Ferrari 488 GTB was the most expensive of the bunch with an as-tested price of $347,942, which is five times more than the Shelby. Once the group was together, R&T hustled them over curving roads and on the National Corvette Museum Motorsports Park. There was a lot to love about the Shelby, even in this impressive crew. "With a flat-plane crank and Sport Cup 2 tires, the GT350R is a Mustang turned up to 11," editor-in-chief Larry Webster said in the announcement of the results. The GT350R joins some great company. Past winners include the Porsche 911 GT3 last year and the Corvette in 2013. For some fantastic photography and the complete appraisal of these performance machines check out R&T's website for the full story. Related Video: ROAD & TRACK NAMES THE FORD MUSTANG SHELBY GT350R THE 2016 PERFORMANCE CAR OF THE YEAR New York, NY (November 9, 2015) – Road & Track today named the Ford Mustang Shelby GT350R the 2016 Performance Car of the Year, beating out seven of the world's best new sports cars. The article appears in the December/January issue, on newsstands November 17, and on RoadandTrack.com. "With a flat-plane crank and Sport Cup 2 tires, the GT350R is a Mustang turned up to 11," said Larry Webster, editor-in-chief of Road & Track. "Not only does the car have soul and harness so much firepower with such ease, but the real achievement here is that it's so approachable. It's a car you can't help but love." The Mustang Shelby GT350R was the winner by a runaway vote.