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GM drops diesel engines for 2020 Chevy Equinox and GMC Terrain crossovers

GM is officially discontinuing the diesel engine in the Chevy Equinox and GMC Terrain for the 2020 model year. The 1.6-liter turbodiesel was always an oddball of an engine in the compact crossover segment, and now the experiment has come to an end. The Car Connection initially reported the news, and a GMC spokesperson, Stuart Fowle, confirmed it to us this morning.  “A huge majority of our Terrain customers have opted for one of our two gas engines," says Fowle. We canÂ’t say this eventuality comes as a massive surprise, as we saw news from couple of months ago that GM was dropping all-wheel drive from the diesel-powered cars for 2020. Low demand was cited as the reason for that cull, and itÂ’s the same for the little GM crossovers this time around, too. These vehicles were the only ones powered with a diesel engine in their class, but thatÂ’s going to be changing. Just as GM is going away from the diesel, Mazda is finally bringing its diesel to market in the CX-5. YouÂ’ll only be able to get that engine in the most expensive ($42,045) trim level, combined with all-wheel drive, though. The cheapest Equinox diesel starts at a comparably low $30,795. ThatÂ’s a $2,400 upcharge over the base 1.5-liter turbo four-cylinder, and the value is questionable. Mileage is better, but diesel fuel is more expensive. Towing capability didnÂ’t increase over the base engineÂ’s 1,500-pound capacity, but the extra torque around town was nice. As diesels go in the U.S., this one was rather rough and noisy, possibly contributing to some turning their noses up after a test drive. Perhaps another reason for its demise was that the much quicker 2.0-liter turbo Equinox was only $100 more than the diesel. This engine offered significantly better towing at 3,500 pounds, too. You can read all about what we thought of the diesel in our first drive review here, but the 2019 model year is the last one if you had it on your shortlist. This article has been updated to indicate the source.

Frustrated GM investors ask what more Mary Barra can do

DETROIT — General Motors Co Chief Executive Mary Barra has transformed the No. 1 U.S. automaker in her almost five years in charge, but that is still not enough to satisfy investors. Ahead of third-quarter results due on Oct. 31, GM shares are trading about 6 percent below the $33 per share price at which they launched in 2010 in a post-bankruptcy initial public offering. The Detroit carmaker's stock is down 22 percent since Barra took over in January 2014. After hitting an all-time high of $46.48 on Oct. 24, 2017, the shares have declined 33 percent. In the same period, the Standard & Poor's 500 index has climbed 7.8 percent. Several shareholders contacted by Reuters said GM could face a third major action by activist shareholders in less than four years if the share price does not improve. "I've been expecting it," said John Levin, chairman of Levin Capital Strategies. "It just seems a tempting morsel to somebody." Levin's firm owns more than seven million GM shares. Barra has guided the company through the settlement of a federal criminal probe of a mishandled safety recall, sold off money-losing European operations, and returned $25 billion to shareholders through dividends and stock buybacks from 2012 through 2017. GM declined to comment for this story, but the company's executives privately express frustration with the market's reluctance to see it as anything more than a manufacturer tied mainly to auto market sales cycles. GM's profitable North American truck and SUV business and its money-making China operations are valued at just $14 billion, excluding the value of GM's stake in its $14.6 billion Cruise automated vehicle business and its cash reserves from its $44 billion market capitalization. The recent slump in the Chinese market, GM's largest, and plateauing U.S. demand are ratcheting up the pressure. GM is one of the few global automakers without a founding family or a government to serve as a bulwark against corporate raiders. In 2015, a group led by investor Harry Wilson pressed GM to launch a $5 billion share buyback, and commit to what is now an $18 billion ceiling on the level of cash the company would hold. In 2017, GM fended off a call by hedge fund manager David Einhorn to split its common stock shares into two classes. Einhorn, whose firm still owned more than 21 million shares at the end of June, declined to comment about GM's stock price. Other investors said there were no clear alternatives to Barra's approach.

2014-15 Chevy Impala recalled over airbag fault

Over 5,700 current-generation Chevrolet Impala sedans are being recalled, General Motors announced today. The fullsize four-doors suffer from an issue with the front seats. According to a report from The Detroit News, a production problem during the seat steaming process could cause "a calibration error in the electronic control module." In turn, that would cause an issue with the Automatic Occupant Sensing system. The AOS is a crucial element, as it looks at the weight on the front seat to determine whether the airbags should be armed or not. According to a bulletin from the National Highway Traffic Safety Administration, a problem with the system could mean that the airbags deploy when they shouldn't, such as when there's a child or infant seat mounted in front. The problem is limited to 2014 and 2015 models that have both heated and vented front seats. Owners will be asked to report to dealers for a free recalibration and ECU reset. Scroll down for the official bulletin from NHTSA. Related Video: Report Receipt Date: JUL 24, 2015 NHTSA Campaign Number: 15V465000 Component(s): AIR BAGS Manufacturer: General Motors LLC SUMMARY: General Motors LLC (GM) is recalling certain model year 2014-2015 Chevrolet Impala vehicles manufactured April 15, 2013, to June 19, 2015, equipped with front vented-heated passenger seats. Accordingly, the Automatic Occupant Sensing (AOS) system may fail to suppress the front passenger air bag if a child seat is in the front passenger seat. These vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No. 208, "Occupant Crash Protection." CONSEQUENCE: If the front passenger air bag deploys with a child seat in the front passenger seat, it increases the risk of injury to the child. REMEDY: GM will notify owners, and dealers will correct the calibration-learning error by preconditioning the empty seat, and also resetting the ECU to a seat zero-value, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Chevrolet customer service at 1-800-222-1020. GM's number for this recall is 15400. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.