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2014 Chevy Cruze Diesel arrives with 42 mpg for $25,695*

The last time General Motors had a diesel passenger car in the US, it was the 1.8-liter 1986 Chevette. At the 2013 Chicago Auto Show today, GM is unveiling the much-anticipated 2014 Chevrolet Cruze Diesel. The compact bows with a 2.0-liter turbo-diesel four-cylinder engine that boasts 148 horsepower and 258 pound-feet of torque, with full twist coming on at just 2,000 rpm. What's more, the common-rail, direct-injection diesel features an overboost function that allows the engine to deliver up to 280 lb-ft of torque for 10 seconds at a time. Even with 10 more horsepower and 110 more pound-feet of torque than the available turbocharged 1.4-liter four-cylinder in the Cruze, the 2.0-liter diesel engine can return up to 42 mpg (highway) bolted to its six-speed automatic transmission.
If you're counting, that figure meets the less powerful Cruze Eco with a six-speed manual transmission. More importantly, the auto transmission Cruze Diesel matches its main competition, the Volkswagen Jetta TDI, in highway fuel economy. The Cruze 2.0 TD (as it will be badged) can also handle up to 20 percent biodiesel (B20), whereas the Jetta is rated only for B5. General Motors has not released city fuel economy for its newest diesel, but we do know how much it will cost you to jump behind the driver's seat.
GM will kindly ask for $25,695, plus an $810 destination fee. That marks a $2,115 premium over a loaded Cruze LTZ Auto and $2,640 more than the Jetta TDI, though the MSRP will net you a leather interior, 17-inch alloy wheels and an Aero Performance Package, as well as a two-year maintenance plan and five-year, 100,000-mile powertrain warranty. Compared to the gas-powered Cruze, you also lose a couple cubic feet of rear cargo space thanks to a 17-liter diesel emission fluid tank. That urea fluid, which helps put the clean in clean diesel, will need to be refilled at least every 10,000 miles.

GM recalling over 40,000 Chevy, Pontiac and Saturn models over fuel pump woes

The National Highway Traffic Safety Administration has issued a recall for a number of General Motors cars and crossovers bought or currently registered in the hot-climate states of Arkansas, Arizona, California, Nevada, Oklahoma and Texas. As many as 40,859 units consisting of the 2007 Chevrolet Equinox, Pontiac Torrent and Saturn Ion and the 2007-2009 Chevrolet Cobalt (shown) and its Pontiac G5 twin are being recalled for potential fuel leaks.
This recall is being issued due to potentially faulty fuel pump components that can crack and cause gasoline to leak from the return or supply ports and possibly cause a fire. NHTSA has not indicated how many fuel leaks or vehicle fires have been reported. As a fix, GM will replace the fuel pump modules on all affected vehicles free of charge. Since Pontiac and Saturn have been shuttered, owners will be able to go to another GM-brand dealership to have their vehicles repaired.
While the list of affected cars and crossovers varies by state and model year, if you own any of these models and live in Arizona, California, Florida, Nevada, Oklahoma or Texas, be sure to check the official notice below for more details.

GM struggles to sell small cars, plans to lay off 2,084 employees at two plants

Due to low demand for some of its vehicles, General Motors plans to cut 2,084 jobs at its assembly plants in Lordstown, OH and Lansing, MI. At the same time, the automaker also announced plans to invest approximately $900 million in three of its facilities – the Toledo Transmission Operations in Ohio, Bedford Casting Operations in Indiana, and Lansing Grand River in Michigan - for future products. GM will discontinue the third shift at both the Lansing Grand River plant and the Lordstown, OH plant. The Cadillac ATS, Cadillac CTS, and Chevrolet Camaro are made at the automaker's plant in Michigan, which currently has 2,700 employees. The move to eliminate the third shift affects 810 hourly workers, as well as 29 salaried employees, starting on January 16th. The plant in Lordstown, OH currently has 4,500 employees and makes the Chevrolet Cruze sedan. The plan to discontinue the third shift will affect 43 salaried workers and 1,202 hourly employees and will start on January 23rd. As Fortune points out, sales of the Cruze are down 20 percent through October, while sales of the Cadillac ATS and CTS were down 17 percent through the same period of time. In addition to cutting the third shift at both assembly plants, the automaker plans to invest a total of $900 million between three of its facilities for unnamed future products. GM's Toledo Transmission Operations will receive $667.6 million, the Lansing Grand River Assembly plant will receive $211 million, and the automaker's Bedford Casting Operations will get $37 million. Last year, GM cut roughly 500 jobs from its Orion Township factory due to slow sales of the Chevrolet Sonic and Buick Verano, with surging crossover and SUV sales as the most likely culprit. With GM posting much healthier sales figures for the Chevrolet Equinox and Cadillac XT5 compared to the ATS, CTS, and Cruze, it looks like compact SUVs are to blame for this year's layoffs as well. Related Video: News Source: Fortune, General MotorsImage Credit: REUTERS / Rebecca Cook Hirings/Firings/Layoffs Plants/Manufacturing Cadillac Chevrolet GM Coupe Sedan Lordstown Ohio