The once-controversial deal General Motors Corp. has with Honda Motor Co. Ltd. to supply Saturn Corp. with Honda engines recently was renegotiated and could be extended beyond 2007, GM sources say.
Honda began supplying Saturn last fall with an optional 250-hp, 3.5L SOHC V-6 for the Vue cross/utility vehicle. It also is standard with the Vue Red Line.
The deal is set to expire in 2007 when the current Vue is replaced. But Jill Lajdziak, Saturn vice president-sales, service and marketing, tells Ward's, “we are having discussions about continuing the supply agreement.”
The 1999 deal called for Honda to supply 60,000 units annually. Honda recently granted GM's request to increase that amount by 5,000 to 7,000 units.
Jim Trucksis, Vue Red Line program manager, says GM may increase by as many as 12,000 units its sales forecast for the Vue Red Line. Saturn began making all-wheel-drive models in December and launched front-wheel-drive versions in March. “So far we're very pleased (with the launch),” Trucksis says.
Securing additional engines from Honda also provides short-term relief by maintaining an adequate inventory of Vues at dealerships. Vue's standard 143-hp 2.2L 4-cyl. is paired with either a 5-speed manual or GM's CVT technology, called VTi, which the auto maker hasn't produced since January due to quality concerns — but GM says VTi production is soon to resume. VTi also is offered on Ion quad coupe models.
