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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.

GM laying off 500 workers to slow Chevy Sonic production

Due to slow sales of the Chevrolet Sonic and Buick Verano, General Motors is cutting a shift at the Orion Township plant that builds the pair. The move lays off about 500 workers, but most of them are expected to get offers to transfer to other factories, Automotive News reports. The move came just a day after GM announced adding 1,200 employees to the Detroit-Hamtramck plant. GM has been trying all year at the Orion Township factory to align production of the Sonic and Verano with their demand. The automaker first attempted idling the plant several times and eventually resorted to laying off about 100 workers. It also reduced the production rate there. With the huge rise in popularity of crossovers, demand for the plant's small cars is on the downturn. According to Automotive News, there's currently a 116-day supply of Sonics and 100 days of Veranos to sell. Delivers tell a similar tale because the Chevy is off 35.2 percent from January to September, and the Buick does little better with a 27.2 percent drop from the same period last year. While the situation at Orion Township might look rough now, big things are on the horizon. Soon, the new Chevy Bolt electric vehicle will be built there when it hits the market around 2017. Plus, the plant will also get a $245-million upgrade and 300 new jobs for another, unannounced vehicle.

Auto Show Notebook: Legendary Continental name inspired Lincoln's designers

What's in a name? A lot for the Continental concept, and it gave Lincoln designers a sense of purpose as they styled the brand's upcoming flagship sedan. "The moment that we told them, it was amazing," Lincoln president Kumar Galhotra said. "They totally got it." "It" is cutting-edge technology wrapped in stately, large-sedan design. It's a nod to Lincoln's storied past, but a signpost for where the brand is heading. Though the Continental name dates to the late 1930s, Lincoln designers avoided making the concept overtly retro. "You can't let it pull yourself back too far in history, but you've got to design a car that lives up to the name," Galhotra said. Speaking to Autoblog on the floor of the New York Auto Show where the Continental formally debuted Wednesday, the Lincoln president reiterated that the car is on track to launch in 2016. It will compete against the Audi A6, Lexus GS, BMW 5 Series and other large luxury sedans. After its debut, the concept in New York will fly to China – another critical market for Lincoln – for display there. It will be replaced in New York by a prototype without an interior. The Continental is the latest high profile play by Lincoln to raise its image with consumers, who have either ignored or forgotten about it amid steep competition in the luxury sector from German and Japanese brands and a potentially resilient Cadillac. Lincoln sales are essentially flat compared with 2014 through the first quarter of this year, with total volume of 21,478 units. The middling start to 2015 comes on the heels of nearly 16-percent sales growth last year spurred by the launch of the MKC and the prominent signing of Matthew McConaughey to star in Lincoln advertisements. Other News, Notes & Quotes Speaking of names, Chevrolet did its homework before deciding to proceed with "Malibu" for its new generation of midsize cars. "We went out and researched it," said Alan Batey, president of General Motors North America. "People actually like the name 'Malibu,'" he said. Admittedly, the current Malibu has struggled in the marketplace against entrenched competitors, Batey said, but he's optimistic its awareness and historical value are assets to the dramatically redesigned sedan."The name's strong," he said. Meanwhile, in other Chevy news, the brand kicked off a new marketing campaign, "Real People, Not Actors" Wednesday. It will show consumers interacting with Chevys and their spontaneous reactions to the vehicles.