from GMinsidenews.
Camaro production to halt after 2010?
Possible, thanks to onerous EPA regulations and GM's acceptance of bailout cash.
After all the teasing, all the rumors, all the false starts, the ups, the downs, production of the all-new Camaro has finally started. But after all the hoops and hoopla, could production come to an end after but one year? According to insiders, this is more than an outside possibility.
Thanks to a little read detail in the bailout agreement, the Camaro may in fact be outlawed when new EPA regulations kick in Jan 1st, 2011.
The problem appears to be one of three things:
1. The Camaro is classified as a "Midsize"
2. New EPA regulations being inacted 2011 forbid two separate midsize vehicles that do not share the same basic architecture or platform or face a nominal fine on a per vehicle sold basis.
3. Provisions in the bailout, in order to gain greater EPA compliance, forbid violating any of the new EPA regulations.
Currently, the mid-size stable at GM is occupied by the Epsilon platform, which is their highest selling platform worldwide. Under new rules, technically the new Camaro would have to share significant architecture to be allowable, which it does not. Either GM would have to scrap the Epsilon cars, or the Camaro. It doesn't take a rocket scientist to figure which would get the axe.
What about the Challenger and Mustang?
These rules don't apply to cars that are not classified as midsized. The Mustang retains a "compact" classification, while the portly challenger is listed as a "fullsize." Also, the strict adherence to the EPA regulations is only deemed if bailout cash was accepted by the automaker, of which Ford accepted none.
One person we talked to believed Ford executives based their decision to not accept bailout money due to the stipulation to adhere strictly to the new EPA regulations, believing them to be "onerous in application." Our insider noted that Ford is not much better off cash-wise than either GM or Chrysler, but felt the EPA standards would be too costly to implement immediately, far less costly than the fines they may likely incur.
What are the Camaro's chances?
It depends on how you look at it. The car might still remain in production; but it might not continue to be sold here in the U.S.
If by 2011, things are looking better for GM, and they likely won't need anymore infusions of cash from the government, GM will likely continue to sell the Camaro in the US market, quickly paying off it's loans so it does not have to adhere as strictly to the EPA standards as they would if they still owed.
If the economy continues to labor, and GM either hasn't payed back the loans, or isn't capable of paying off the loans, then Camaro production would dwindle, with cars only being exported for foreign markets. This would allow for a reintroduction once the debt is satisfied.
But if foreign markets don't take to the distinctively American styling and performance priorities, production may in fact be halted.
There is hope!
Other avenues open to continued to be explored, including negotiations with the Whitehouse and Congress. Rick Wagoner is said to be in Washington this weekend lobbying for some flexibility with the EPA rules. Though one insider present in negotiations note that many in the meetings are more concerned with environmental impact of breaking the EPA regulations; he also noted that some representing congress in the negotiations understands the situation GM is in, and is willing to push for some changes.
Our insider within the product planning division notes that the platform used for the camaro is very flexible, underpinning some fullsize cars overseas. She notes that plans are being worked on to increase the interior capacity to bring the Camaro up to "fullsize" status. She notes that they cannot realistically make the car smaller. She sadly also notes that the lengthening to get to fullsize specifications would also result in a car with different proportions and probably 300 lbs. more weight.
Best case scenario?
Easily being for a quick upturn in the economy and a quick pay down of loans, allowing GM greater leeway with EPA compliance. Otherwise you might be reading about how great Aussie auto enthusiast have it with the readily available Camaro, or contemplating a distorted, overweight facsimile of what we once called, "the Camaro."