GM shelves Camaro convertible, Z28

General Motors has delayed indefinitely the Chevrolet Camaro convertible and Z28 high-performance variant to save cash, sources say.

GM also has tabled plans to add a four-cylinder engine version of the Camaro. GM is starting to ship the Camaro to dealers this week.

Insiders say executives hope to restore the convertible to GM's product plan. GM originally had wanted to launch a convertible in 2010 and bring out the Z28 soon afterward.

"Neither one has been outright canceled," says Terry Rhadigan, a Chevrolet spokesman. Rhadigan said GM will seek to bring out the convertible in 2011.

The Z28 was to have challenged two rival performance muscle cars--the Shelby GT500 version of the Ford Mustang and Dodge's Challenger SRT8.

Plans for a four-cylinder engine for the Camaro lost appeal as gasoline prices dipped and the Camaro scored well on federal fuel-economy tests.

Last year, Vice Chairman Bob Lutz said GM was considering the same four-cylinder engine for the Camaro that GM uses in the Pontiac Solstice and Saturn Sky roadsters. The 2.0-liter turbocharged direct-injection engine is rated at 260 hp in those cars.

Gene Stefanyshyn, GM's vehicle line executive for performance cars, said cheaper gasoline played a role in shelving the smaller engine.

"We're looking at it. We don't have anything approved," Stefanyshyn said at a press event last week. "But with gas $1.78 a gallon, we have to weigh where we put our poker chips."

Another source familiar with GM product plans confirmed that the four-cylinder for the Camaro is dead for "the time being."

Not only have fuel prices leveled out, but GM surpassed its own estimated highway mileage rating of 27 mpg for the V6 Camaro. The EPA last week rated that vehicle at 29 mpg in highway driving.

The strong fuel-economy performance of the 3.6-liter, 304-hp V6 reduces the need to offer a four-cylinder engine, sources say.

GM also offers a 6.2-liter V8 in two versions, making 400 hp and 426 hp.

GM began building the Camaro, which starts at $22,995, including shipping, on March 16. GM estimates that it will take until May or June to fill the 14,000 sold orders in hand.

Richard Truett contributed to this report

By Jamie LaReau- Automotive News