It’s been a historic week for us, and I don’t mean in Washington. And let me just say upfront that I know there is a lot of talk online about that subject. But I am not going to comment here about any government loans or hearings or GM’s financial situation — just like I wouldn’t engage you in conversation about it if I ran into you in the produce aisle. We have other places online for that conversation, such as gmfactsandfiction.com.

I would like to give you a brief update, however, on the progress we’re making on the Chevrolet Volt, and I would characterize it as great progress.

We have moved on to the next phase of engineering development for the vehicle. That means that we’ve moved from the Volt test mules using previous-generation Malibu bodies (affectionately known as “MaliVolts”) to test vehicles using vehicles from our next-generation global compact car architecture.

That architecture will not only spawn vehicles like the Volt, but also the Chevrolet Cruze and others like it. And I have to say, after driving it with the Volt system placed within, I feel terrific about the driving dynamics of that architecture. It instantly feels several price classes higher than what it actually is, due to the level of refinement.

The relative quiet and absence of vibration stand out, among other things. The chassis integrity felt outstanding to me… the steering response was good, the brakes were good, the turn-in was good and so on. I think it needs very little in terms of additional tuning. So I have very high hopes for when we get some test vehicles running with the actual Volt production body aboard.

As for the powertrain and propulsion system, I couldn’t be more pleased. It was 30 degrees and windy and flurrying. We started with about a 60-percent charge on the battery pack, to see how it would perform and when the engine would kick on.

To my delight, we went about 19 silent, electrically powered miles before that engine engaged. And when it did, it was so quiet and non-jarring that they had to tell me it had come on, because I wasn’t looking at the tach. Granted, many years in airplane cockpits have taken their toll on my hearing, but still, I can say with impunity that the engine was quiet and not at all intrusive in terms of noise.

Right now, the engine is tuned rather aggressively so that once it did kick on, it tended to cut in and out quite a bit at low speeds. But we will find the right balance to address that — that’s why we’re doing all this development work! I know there were concerns about what it would be like when the engine kicks on, whether it would excite the structure and cause all kinds of vibrations and such, but I have to say it wasn’t an issue. It was wonderfully masked, and will continue to improve as testing continues.

I ended up putting in about 30 miles behind the wheel, and I couldn’t be more pleased with the vehicle, the development, or the team behind it. And they will continue to work round the clock to further refine the Volt and get it on the road — and in your hands — year after next.

Here I am, working “virtually” at home, recovering from hip replacement surgery, paying the price for an old football injury. On TV, I’m watching the action in Washington, listening to speeches based on outdated perceptions that persist among some of our most experienced leaders and media pundits. Apparently, many of them haven’t been into a GM showroom lately, talked to our customers, or driven our vehicles. In some ways, GM and I are both paying the price for some old injuries.

But change is upon us, and the news from J.D. Power today tells us that every GM brand scored above industry average in their latest Sales Satisfaction Index (SSI) Study. We continue to improve, and our dealers are providing the best service to customers in the industry — better than the imports, I might add.

Sure, between 2002 – 2006 General Motors reduced its warranty repairs by 40 percent … then reduced repairs again in 2006 and 2007 by about 14 percent, consecutively. We’re on track to do the same thing in 2008. That’s a testament to our quality. But if you asked a lot of folks today, they’d tell you about the problems they had, and won’t forgive, from plus-20 years past on their 1982 Oldsmobile.

Let’s look at today’s reality. In its launch year, the Chevrolet Malibu led the ultra-competitive midsize segment in the 2008 J.D. Power and Associates Initial Quality Study, which is unprecedented in the industry. The Malibu’s performance far exceeded that of both Honda and Toyota in the same segment. Chevrolet, Cadillac, Pontiac and Buick, which represent 82 percent of the cars and trucks we sell ranked above industry average in the 2008 J.D. Power and Associates Initial Quality Study. You might be surprised to find that all of our eight brands in today’s SSI study – Chevrolet, Buick, Pontiac, GMC, Saturn, Hummer, Saab and Cadillac – ranked above industry average. That’s right, not just our luxury brands, but every brand. I’m not surprised because I know that we have the best dealers in the industry. Most importantly, our customers know it too. Think about this for a moment, for all the worry and purchase anxiety that some customers walk into any dealership with, if it was a GM franchise, they walked out more satisfied than most who went into competing dealerships. To me, that proves we offer vehicles of a better value, delivered by salespeople who demonstrate a commitment to a quality sales and service experience.

To all of our GM dealers who contributed to these great results, good job and keep it up. To everyone in the market looking for a great new car or truck, stop in to your nearest GM dealer and test one of our 20 cars that get 30 mpg or more. Try out the segment-leading Chevrolet Malibu, or take your pick from six new hybrids or many other superb products.

To paraphrase a popular lyric today “what don’t kill me will make me stronger,” so heads-up pundits!

I feel a second-half comeback coming on…

On Meet the Press you said, “So, show me a plan…” on why GM should receive government aid to bridge the current global financial crisis. We’ve invited you repeatedly to visit General Motors and see firsthand all we are doing to transform our business and develop new, energy-saving technologies.

We’re disappointed you still haven’t taken us up on our offer. You would be surprised at what you’re missing:

• A leaner company that has reduced its annual structural costs in North American by 23 percent, or $9 billion, since 2005, and are on track to reduce them by about 35 percent, or $14-$15 billion, by 2010. We also negotiated a landmark labor agreement with the UAW last year that will enable us to virtually erase the competitive gap we’ve had with foreign automakers.
• Award-winning products in the Chevy Malibu and Cadillac CTS, (Motor Trend magazine’s 2008 Car of the Year). The Chevy Malibu beats the Toyota Camry in highway mileage, and was recently ranked the highest in initial quality in the midsize car segment by J.D. Power & Associates.

In fact, 13 of our last 15 new product launches in the U.S. were cars or crossovers, and 18 of our next 19 new products will be, as well. Mr. Friedman, we also think you’ll be particularly interested in the huge progress we are making to develop a broad range of advanced propulsion technologies.

• For 2009, GM will offer 20 models in the U.S. that get 30 miles per gallon or better on the highway –twice our nearest competitor.
• We now sell six hybrid vehicles, with three more on the way by the middle of next year.
• We have more than three million flex-fuel vehicles on the road in the U.S., which are capable of running on bio-fuels like ethanol and we are committed to making 50 percent of our annual production flex-fuel capable by 2012.
• We’ve established the world’s largest fuel-cell test fleet by placing more than 100 Chevy Equinox Fuel Cell vehicles in the hands of U.S. drivers.
• And perhaps most important, we’re running all-out to get the Chevy Volt extended range electric vehicle to market as soon as possible. When running off its battery, the Volt will be able to drive up to 40 miles–more than the average daily commute for over three-quarters of Americans–without using a drop of gas.

Mr. Friedman, what exposes us to failure now is not our product lineup, or our business plan, or our long-term strategy. What exposes us to failure now is the global financial crisis. Please know that you have an open invitation to come and visit GM. We’ll be happy to brief you and we’ll even show you the cool stuff. Please give us a call. We’re looking forward to your visit.

Sincerely,

Steven J. Harris
GM Vice President, Global Communications

Editor’s Note: New York Times columnist Thomas L. Friedman has written frequently about the US auto industry and appears regularly on NBC’s Meet the Press.

Former House Majority Leader Richard Gephardt has weighed in on Friedman’s latest column Check out his reponse here.

As we gear up for America’s busiest travel week of the year, OnStar will be making a significant safety announcement tomorrow: the 100,000th automatic crash response. OnStar President Chet Huber will be hosting an online press conference about the announcement, and will be joined by families whose lives have been saved by OnStar’s automatic crash response, as well as by first responders and medical professionals who have been on the scene of these crashes.

Please visit onstar.com Tuesday, Nov. 18, after 6 p.m. Eastern to hear the press conference.

While we find these numbers sobering, we are heartened to see that Americans understand the impact and importance of our industry. We also understand that people expect us to be accountable for the assistance we receive. With 84 percent of respondents saying that the collapse of the domestic auto industry would harm the U.S. economy, we know that this issue is a very important one for the American public right now. Please feel free to share these results with anyone you know who would like to gain a better understanding of the current crisis. - Christopher Barger, Director, Global Communications Technology

The Center for Automotive Research has just released a study that examines the potential ramifications of two scenarios involving significant downsizing of the Big Three, and what such a development could mean to the larger economy. We didn’t write or fund this report… but we thought that you should see it, because it might make you think of things you hadn’t before. - Christopher Barger, Director, Global Communications Technology

As an amateur sports car racer, Corvette chief engineer, and rabid racing fan, I’ve seen more than my share of winner’s circle ceremonies. I never thought I would see the day when the U.S. Environmental Protection Agency, the U.S. Department of Energy, and SAE International, the world’s leading automotive engineering organization, were awarding trophies at an auto race. I saw it happen on Oct. 4 at the conclusion of the American Le Mans Series’ Petit Le Mans sports car race at Road Atlanta in Braselton, Ga. And I’m proud to say that General Motors and Corvette Racing, Chevrolet’s factory team, received the winner’s trophies in the inaugural Green Challenge.

The Green Challenge was a “race within a race” during the 1,000-mile endurance event. The four ALMS classes made up of 37 high-tech race cars all took part. Racing is all about getting to the finish line first, but on this night it was also about performance, fuel efficiency and environmental impact.

Working with the EPA, DOT and SAE, the series organizers and the Argonne National Laboratory created a formula that calculated the winning entries in the Prototype and GT classes based on energy used, greenhouse gases emitted, and petroleum fuels displaced. In short, the Green Challenge recognized the fastest car with the smallest environmental impact.

Corvette Racing is America’s premier sports car racing team. Since its debut in 1999, the team has won eight consecutive ALMS championships and 73 races, including five class wins in the prestigious 24 Hours of Le Mans. From my perspective, winning the Green Challenge is the team’s most significant achievement to date.

After nearly 10 hours of racing, the No. 3 Compuware Corvette C6.R driven by Johnny O’Connell (Flowery Branch, Ga.), Jan Magnussen (Denmark), and Ron Fellows (Canada) posted the best overall score in the Green Challenge. In fact, the Corvette’s score was 50 percent better than the Porsche that won in the Prototype division.

Don’t think the Green Challenge was an economy run with drivers pussyfooting around the track to save fuel. Speed mattered, and it was a full-throttle, flat-out race before a record crowd. The class-winning GT1 Corvette completed 365 laps on the Road Atlanta course, averaging more than 95 mph for nine hours and 41 minutes.

I’ve never been prouder of General Motors and Corvette Racing than when Steve Wesoloski, the head of GM’s road racing programs, accepted the manufacturer and team trophies on the victory podium. It culminated a plan that began in January at the North American International Auto Show when Ed Peper, North American Vice President, Chevrolet, announced that Corvette Racing would use cellulosic E85 ethanol racing fuel in the 2008 season.

The important thing to know about the E85R fuel used by the Corvette race cars is that it is primarily cellulosic ethanol, made from wood waste collected in the Black Hills National Forest as part of a wildfire prevention program. Dead trees, broken branches and undergrowth that would otherwise be burned are converted to cellulosic ethanol at KL Energy’s plant in Wyoming. The conversion plant is energy self-sufficient, and actually supplies surplus electricity to the power grid.

Since the Green Challenge formula considered the overall environment impact of the fuel used from “well to wheel,” the decision to use second-generation cellulosic ethanol in the Corvette race cars’ 7-liter GM small-block V-8 engines was decisive in the Green Challenge victory. In fact, the greenhouse gas emissions for the winning Corvette was 170 percent better than the first non-E85 finisher in the GT class.

GM engineers and the race team analyzed every aspect of the race cars to minimize energy use by reducing friction, aerodynamic drag, and rolling resistance. They worked with our technical partners on lubricants to reduce power losses in the engine and drivetrain. They used sophisticated computational fluid dynamics programs to refine the body shape. They developed tires that trimmed rolling resistance without sacrificing traction.

Corvette Racing’s success in the Green Challenge proved the validity of E85 as a good choice for those of you who drive some of the 3 million GM flex-fuel vehicles on the road today. There is no silver bullet to our nation’s energy challenges, but nothing has done as much as ethanol to offset oil demand. It’s a practical solution being implemented today while we continue to develop promising new technologies for tomorrow. In the race to protect and preserve the environment, there is no finish line.