General Motors has announced the closure of its High Performance Vehicle Operation signaling the end of fast cars as we know them. It is another step in the company's road to recovery that revolves around meeting strict new fuel economy targets for mass produced vehicles.

The announcement comes only a day after the company went back to the US Government seeking US$16.6 billion in financial aid. The recovery plan it submitted to the Department of Treasury indicated that GM would focus on fuel efficient and crossover vehicles in order to cut its emissions and re-establish itself as a viable operation.

And that means no more fast cars built in low numbers, like the acclaimed Cadillac CTS-V.

"All high-performance projects are on indefinite hold," said GM spokesman, Vince Muniga. "The engineers are moving into different areas of the organization, and they will work on Cadillacs, Buicks, Chevrolets and Pontiacs."

The High Performance Vehicle Operation was responsible for producing the Cadillac V-series range as well as the Chevrolet Cobalt SS, HHR SS and V8 Colorado.

Current Holden managing director Mark Reuss was appointed the Executive Director of the division in 2001 and oversaw much of the work on the hot-rod Cadillac range including the Cadillac racing program in North America.

The news doesn't affect the production of Chevrolet's other V8-powered sportscars the Corvette and Camaro but does demonstrate just how bad things have become for the company.

GM will redeploy the current engineering team from the division into other roles within the company, leaving open the opportunity of recreating the performance operation if it can regain its financial footing.