GM scraps RWD work

TOUGH forthcoming fuel economy laws in the US have persuaded General Motors to scrap a Holden-led program developing future large rear-drive sedans for Chevrolet and Buick, according to a GM source quoted in an Automotive News report this week.

The source told the US industry journal that “serious fuel economy issues” forced the development program, which included the Chevrolet Impala due around 2011, to be scrapped.

Another source reportedly said that no other large-car programs underway would be shelved.

Federal fuel consumption laws in the US unveiled last month mandate a 40 per cent increase in economy by 2020, with a 25 per cent improvement to be achieved in the 2011-2015 model years.