GM to build two-mode hybrid transmission at Baltimore plant

General Motors announced it will invest up to US$118 million to upgrade its GM Powertrain Baltimore Transmission facility in White Marsh, Md., for building its new, rear-wheel drive two-mode hybrid vehicle transmission.

The two-mode transmission, which will go into production next year, is the first light-duty integrated hybrid transmission to be designed and built in the U.S. It will be used initially in GM's full-size SUVs, the Chevrolet Tahoe and GMC Yukon. The hybrid-powered vehicles will be assembled at GM's Arlington, Texas, plant.

The only other U.S.-designed and built hybrid transmission from a major auto manufacturer is also produced by GM. A heavy-duty two-mode transmission for urban transit buses began production in 2003. GM has provided 388 hybrid propulsion systems, designed and built in Indianapolis, Indiana, for transit systems in 29 cities in North America and Yosemite National Park. GM begins 2006 with orders for an additional 216 hybrid bus systems.

"Our two-mode hybrid transmission is a leap forward in hybrid technology and a key part of GM's unique strategy to offer several different hybrid systems in a range of popular vehicles," said GM chairman and CEO Rick Wagoner. "Our multi-pronged hybrid program is in addition to our many other efforts to minimize the impact of our cars and trucks on the environment, including the 1.5 million GM vehicles already capable of using ethanol/gasoline blended E85 fuel, and our cutting edge advances in hydrogen fuel-cell technology."

GM, the BMW Group and DaimlerChrysler are co-developing the light-duty two-mode technology, modeled on GM's multi-patented hybrid-electric diesel technology in urban transit buses. GM's two-mode hybrid will be mated with Active Fuel Management for a fuel-efficiency gain of at least 25 percent by:

- Capturing electrical energy through regenerative braking

- Shutting the engine off (and fuel) at idle and during deceleration

- Providing an all-electric launch and drive capability

Two-mode hybrid technology uses a variable transmission with two electric motors and two hybrid modes of operation. The addition of a second mode to the drive system improves efficiency and reduces the need for exceedingly large electric motors. The second mode is used mostly when the vehicle is at higher speeds, such as on the highway, so fuel economy will be optimized in both city and highway driving.

The two-mode hybrid delivers seamless, dependable power on demand and in a more efficient package, with motors less than half the size of single-mode systems. It also presents tremendous possibilities for GM globally because it can be adapted for a wide range of vehicle types in any region of the world.

The two-mode hybrid is one of a range of hybrids GM is launching, providing customers with several levels of fuel economy savings at different price points on vehicles ranging from cars to full-size SUVs. GM already builds and sells the industry's first and only hybrid pickups, the Chevrolet Silverado Hybrid and the GMC Sierra Hybrid, which deliver the highest city fuel economy in their segment. The trucks went on sale in the US as of the 2006 model year.