GREAT NEWS FROM GM; THE GENERAL ANNOUNCES 19 ALL-NEW OR HIGHLY-UPDATED ENGINES AND TRANSMISSIONS:STOCK IMMEDIATELY DROPS (HUH?)

The General is planning to bring out 19 all-new or greatly-updated engines and transmissions, beginning in the 2007 model year. The day of the announcement the company's stock FELL by .40 cents. How do you explain that? I have no idea! The smokestack industries just are not a 'sexy' buy on The Street, no matter WHAT they announce! Also, GM is forced to make plans for increasing production of the Saturn SKY (below right) and Pontiac Solstice. Both models are SOLD-OUT for the entire year!

General Motors says that it was introducing 19 new or significantly redesigned engines and transmissions in its 2007 model year vehicles, including a new hybrid system and a fuel-saving V-6.

It will also offer 14 models — or about 400,000 total vehicles — that can run on E85 ethanol in 2007, compared with nine models in 2006. GM has nearly 2 million ethanol-capable vehicles on the road. But --- Here in So Cal, there ain't too many places to buy the stuff!

The 2007 Chevrolet Impala will have GM's first V-6 engine with a "cylinder deactivation" system that saves fuel by automatically operating on fewer cylinders when the vehicle is not carrying a heavy load. Previously, the system was available only for V-8 engines. An Impala with the new 3.9-liter V-6 will get an estimated 20 miles per gallon in the city and 29 mpg on the highway, a more than 5% improvement over the current model, GM said.

The 2007 Saturn Vue Green Line (seen at right), due out this summer, will have a new gas-electric hybrid system that GM says will use as much as 20% less fuel than a traditional Saturn Vue. The Green Line will get an estimated 27 mpg in the city and 32 mpg on the highway, compared with 33 mpg in the city and 28 mpg on the highway for Toyota's hybrid Highlander.

The all-new ECVT (electric continuously variable transmission) which we have reported on previously, with GM teaming with DaimlerChrysler and BMW to develop a more advanced hybrid system, is now officially slated to debut on the 2007 Chevrolet Tahoe.

GM also is expanding the number of vehicles with six-speed automatic transmissions. The automaker says the six-speeds offer better fuel economy and performance and smoother shifting than traditional four-speeds. They also cut down on wear by reducing engine revolutions per minute.

All GREAT news, right? So here's the kicker: GM shares fell 40 cents to $24.06. The adage is true: "No good deed goes unpunished".