The string of bad news continues out of General Motors. Today the company announced that the Duramax 4.5L V8 Diesel, planned for the 2010 Chevrolet Silverado and GMC Sierra 1500 will be scrapped indefinitely.

The 4.5L mini-Duramax was set to be a significant option for the 2010 model year.  While the engine has not been totally scrapped and GM “remains optimistic” that the engine will be a viable option in the future- potential owners are looking forward to a 310-hp, 520 ft-lbs engine option in a light duty truck will no doubt be disappointed.

The announcement is just the latest in a string of bad news announcements out of the beleaguered automaker.  Just last week General Motors announced that an internal audit of the companies finances put serious doubt on the future viability of the company despite US Government backed loans.

GM Statement Regarding the Duramax 4.5L V-8 Diesel

Given the current economic climate, GM has reviewed and updated its U.S. product portfolio and has decided to place on indefinite hold its previously announced plan to add a Duramax 4.5L V-8 diesel engine in 2010 to its Chevrolet Silverado and GMC Sierra light-duty trucks.

Chevrolet and GMC will continue to offer a heavy duty Duramax 6.6L V-8 diesel, which is class-leading in both horsepower and torque. Light-duty truck customers can also choose from several fuel-efficient gasoline engines with GM’s Active Fuel Management mated to a six-speed transmission or a new 2-Mode hybrid that provides up to 40 percent improved city fuel mileage and 25 percent improvement in overall fuel efficiency. In fact, no other full-size pickup has better fuel economy.

GM remains optimistic that the Duramax 4.5L V-8 diesel may be a viable option in its future portfolio.

General Motors has announced the base price of a 2WD Silverado Hybrid will be $38,995, topping out at $45,130.  The Sierra Hybrid will be slightly more, starting at $39,365, with the uplevel trim package  priced at $45,500.

The Hybrid duo are equipped with:

* 6.0-liter V-8 engine (332 hp / 247 kW)
* Low rolling resistance tires
* Hybrid ornamentation
* Soft tonneau cover
* Standard head curtain side air bags

Fuel efficiency has been rated at 21-mpg in the city and 22-mpg on the highway.

Additional Insight:
In the case of the “base” Silverado Hybrid, which is based on the 1LT trim level package, a similarly equiped non-hybrid Silverado runs about $31,895 based on current incentives. That sets the hybrid premium at $7,100. To help offset the price difference, Silverado and Sierra Hybrid buyers are able to claim a $2,200 federal tax credit.  Assuming the tax break reduces the gap to $4,900- you’re paying $980 per additional mile of fuel economy.