The term "Blue Devil" was coined because Rick Wagoneer, Head of GM, his former college was Duke U, where he played for the Basketball team. It was a way for the people involved to make the deal sound better to Rick.
And yes, if current rumors are true, the LS9 will be used. The LS9 is a 6.2 Liter Supercharged engine making aprox 650hp.
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2/20/2013: They Day the ****s Stopped
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