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GM profits threatened by glut of pickups

Automotive News reports that General Motors may slash production or ramp up discounts in order to deal with an oversupply of pickup trucks. GM currently has more than double the standard supply of pickups, and the vehicles are threatening to dampen the automaker's profits for 2013. Typically, automakers try to sustain a 60- to 75-day supply of vehicles, but GM is currently loaded with a 139-day supply, as of last month. At the end of November, the automaker was sitting on 245,853 units.
The manufacturer says that it will adjust production accordingly before laying any incentives on the profitable pickups. Even so, there's some concern that the inventory swell could hurt the roll-out of the next-generation Chevrolet Silverado and GMC Sierra. GM actually began slowly stepping back production in August, but it's clear the company will take further action as it heads toward the end of the year and into the next. Analysts predict the automaker could reduce pickup manufacturing by nearly half in the first quarter of 2013.
That still may not be enough to keep GM from laying extra cash on the Silverado and GMC Sierra. While the company's incentive spending was down in November compared to the same month in 2011, both the Ram 1500 and Ford F-150 saw double-digit percentage increases in sales last month while the Silverado and Sierra numbers slid compared to a year prior. Incentive spending could help move more trucks and add some balance to the GM inventory surge.

GM recalls over 323,000 HD pickups because tailgates can open unexpectedly

General Motors is recalling more than 323,000 heavy-duty pickup trucks in the U.S. because the electronic tailgate release switches can short circuit and open the gates while the vehicles are in park. The recall covers certain Chevrolet Silverado and GMC Sierra 2500 and 3500 trucks from the 2020 through 2024 model years. The National Highway Traffic Safety Administration says in documents posted on its website Tuesday that water can get into the switches and cause the tailgates to open when in park gear. The agency says that can result in unsecured cargo falling out of the beds, creating a road hazard and increasing the risk of a crash. GM is advising owners to check that the tailgate is closed and latched before they drive the trucks. Dealers will replace an exterior touchpad switch. Owners are to be notified by letter starting March 18. GM dealers also have been told to stop selling affected vehicles until repairs are made. The company says in documents that it has 136 complaints about the tailgates opening unexpectedly. GM reported one complaint of a minor injury and three complaints of minor property damage. Recalls Chevrolet GM GMC Truck

Callaway, Lingenfelter boost Corvette Z06 way beyond 700 hp

With 650 horsepower and just as much torque on tap, few would accuse the latest Corvette Z06 of being down on power. But for those who'll always demand more, two leading Corvette tuners have just announced new tuning packages for the Z06 to boost Chevy's flagship well beyond 700 horsepower. The more powerful of the two comes from Callaway Cars, which has added a larger supercharger, a triple-action intercooler, and more to increase output to a massive 757 horsepower and 777 pound-feet of torque. The result, according to Callaway, is a 0-60 time quoted at 2.8 seconds and a quarter-mile run in 10.5. The package also includes a reshaped hood, all manner of trim upgrades, and a three-year warranty, and will set you back nearly $17k on top of the cost of donor vehicle that currently lists for $79,000. In what could only come second relative to Callaway's kit, Lingenfelter Performance Engineering has also released a Stage 1 package for the Z06. The kit includes a new dry sump damper, upgraded supercharger pulley and drive belt, and more – all of which Lingenfelter says will boost the Vette's output up to 720 hp and 730 lb-ft. Revised performance figures weren't released, but despite the 37-horse, 47 lb-ft deficit, we doubt it'd trail Callaway's by much. But both would likely leave the stock Z06 in their dust, and you can read more about them in the press releases below. Related Video: Callaway Cars Releases Their Most Powerful Corvette - 757 bhp / 777 lb-ft - Z06-based Corvette upgrade boasts 32% larger supercharger, triple intercoolers, and consistent power - lap after lap The Numbers - Callaway Cars today announced power numbers and performance for the flagship model in their performance car lineup. Equipped with Callaway's GenThree Supercharger, the Corvette Z06 now produces 757 bhp @ 6,200 rpm and 777 lb-ft @ 4,500 rpm (SAE). A launch to 60 mph is now achieved in 2.8 seconds, and a quarter-mile in 10.5 seconds at 131 mph. Why Go Big, When You Can Go Bigger? - Size Matters. To reach that power (which is up from 650 bhp / 650 lb-ft) the supercharger itself needed to be bigger since the output of a positive displacement supercharger is proportionate to its size. The Callaway GenThree supercharger is 32% larger in displacement (2300cc vs 1740cc). Cooling - Callaway engineers recognize that a key contributor to maximizing power is reduction of inlet air temperature associated with forced induction.