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GM will compensate SUV owners for fuel-economy error [UPDATE]

General Motors will offer debit cards to owners of some of its crossover SUVs after it was discovered that GM overstated the vehicles' fuel economy on window stickers, Automotive News says. GM will offer reimbursements to about 135,000 customers that are worth between $450 and $1,500 each. Some owners will also have the option of being provided with an extended warranty free of charge instead of the debit card. GM overstated fuel economy on about 170,000 vehicles by one to two miles per gallon because of what it has said was an inadvertent error stemming from not factoring the impact of emissions-related hardware into the EPA window-sticker figures. As a result, GM put a temporary stop-sale on the Chevy Traverse, GMC Acadia, and Buick Enclave before switching out the window stickers on about 60,000 vehicles. Automotive News says letters and debit cards will be sent out next week, and Reuters is estimating that the reimbursement program will cost GM about $100 million. With automakers ranging from Hyundai/Kia to Ford to, more recently, Volkswagen and Mitsubishi being ensnared by emissions or fuel-economy-rating issues, GM is working quickly to address the problem. For those curious, the reimbursement totals, factoring in current gas prices, the SUVs' combined fuel economy, and typical driving of about 12,000 miles a year, will provide between three and 12 months worth of free gas for those drivers (the models get either 17 or 18 miles per gallon combined, depending on front- or four-wheel-drive configuration). While about 135,000 customers will be reimbursed, Automotive News says the fleet buyers of about 35,000 crossovers haven't been addressed yet. UPDATE: GM spokesman James Cain, in an e-mail to Autoblog on Sunday, confirmed that the company will reimburse about 135,000 customers. Purchase customers will be given the option of a pre-paid debit card or a 48-month/60,000-mile protection plan, while lease customers will be offered the pre-paid debit cards. Most of the cards will have a value of between $450 and $900 on them. "We want all of our customers to have a great ownership experience, so we designed this reimbursement program to provide full and fair compensation in a simple, flexible, and timely manner," he wrote.

Even if GM does close all 5 of those plants, it'll still have too many

DETROIT — General Motors' monumental announcement on Monday that it will close three car assembly plants and two powertrain plants in North America and slash its workforce will only partially close the gap between capacity and demand for the automaker's sedans, according to a Reuters analysis of industry production and capacity data. Sales of traditional passenger cars in North America have been declining for the past six years and are still withering. After GM ends production next year at factories in Michigan, Ohio and Ontario, it will still have four U.S. passenger-car plants — all operating at less than 50 percent of rated capacity, according to figures supplied by LMC Automotive. In comparison, Detroit-based rivals Ford and Fiat Chrysler Automobiles will have one car plant each in North America after 2019. The Detroit Three are facing rapidly dwindling demand for traditional passenger cars from U.S. consumers, many of whom have shifted to crossovers and trucks. Passenger cars accounted for 48 percent of retail light-vehicle sales in the United States in 2014, according to market researchers at J.D. Power and Associates. This year, sedans will account for less than a third of light vehicle sales. That shift in turn has left most North American car plants operating far below their rated capacities, while many SUV and truck plants are running on overtime. The collapse in passenger-car demand is a challenge for nearly all automakers in the United States, including Japan's Toyota and Honda, which have the top-selling models in the compact and midsize car segments. Toyota executives said last month they are evaluating the company's U.S. model lineup. But Toyota also plans to build compact Corolla sedans at a new $1.6 billion factory it is building in Alabama with partner Mazda. The obstacles facing GM in its plans to close more auto factories became apparent on Tuesday as U.S. President Donald Trump threatened to block payment of government electric vehicle subsidies to GM. While it is not certain that Trump unilaterally has the power to do that, he made it clear he intends to use his office to pressure the company to keep open a small car plant in Ohio that GM says will stop building vehicles in March.

Specialty Vehicle Engineering's 750-horsepower GMC Canyon fully revealed

GMC's celebrated Syclone will turn 30 in early 2021, but nothing suggests the company will mark the occasion by releasing a modern interpretation of the pickup. New Jersey-based tuner Specialty Vehicle Engineering (SVE) is taking the matter into its own hands by building a limited number of GMC Canyon trucks with Hellcat-like power. Although the original Syclone received a turbocharged V6, the 2021 model gains a 5.3-liter V8 normally found in bigger vehicles, including the Sierra and Yukon. SVE rebuilt it with forged aluminum pistons, forged steel connecting rods, high-lift valve springs, a custom crankshaft and upgraded fuel injectors among other aftermarket parts. It also added a supercharger to raise the eight's output to 750 horsepower and 600 pound-feet of torque. Power flows to the four wheels via a strengthened 8-speed automatic transmission and a permanent all-wheel-drive system. For context, the first Syclone gave the Chevrolet Corvette a run for its money with a fuel-injected, 4.3-liter V6 turbocharged to 280 horsepower and 360 pound-feet of torque. These numbers were spectacular in the early 1990s since the Sonoma that Syclone was based on shipped with the 105-horse Iron Duke four-cylinder as standard. Even compared with the Sonoma GT that got a naturally aspirated 4.3-liter V6 with 195 horsepower and 260 pound-feet of torque, the Syclone was impressive. SVE installed six-pistons front calipers that clamp 13.6-inch slotted rotors, and it kept the factory brakes out back. It also lowered the suspension by two inches in the front and five inches in the back, upgraded the shocks, and added a heavy-duty rear sway bar. These modifications help drivers make the most of the extra power, but SVE hasn't published performance specifications (like the truck's zero-to-60-mph time) yet. Surprisingly, the eight-cylinder weighs almost the same as the V6 it replaces so the engine swap doesn't affect weight distribution. Visually, the Syclone can't be mistaken for a run-of-the-mill Canyon. It wears a deep front bumper, has cladding over the rocker panels and rides on 20-inch alloys. Edition-specific emblems round out the look, and the list of options includes a body-colored grille as well as a folding tonneau cover. SVE's images show a truck painted black, which was the only color offered on the 1991 model, but it's available in any factory hue. Inside, the modern-day Syclone gains special floor mats and a numbered plaque on the dashboard. Leather is optional.