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GM announces net 220 job increase as Trump visits Michigan

GM announced today that about 900 jobs would be added (or, importantly, retained) ahead of President Trump's arrival in Michigan, where he is expected to discuss his plan to roll back fuel economy standards. The timing of the announcement is almost certainly not coincidental, as appending it to a Trump visit gives it a higher profile and dovetails with the President's jobs agenda. It's less likely the decision itself was made for those reasons, but the free PR boost is a nice bonus. As for those 900 jobs themselves, they aren't all new jobs. The only net gain is approximately 220 jobs at the Romulus Powertrain Plant, which produces the 10-speed automatic transmission that's proliferating through the company's lineup. The 180 jobs at Flint Assembly and 500 jobs at Lansing Delta Township are retained jobs – that is to say, spots the company found for workers who would otherwise have been laid off. By the way, the Flint jobs will help with production of heavy-duty pickups, and the Lansing jobs are to produce the Chevrolet Traverse and Buick Enclave. Finding jobs for manufacturing workers in the auto sector, whether new or retained, is admirable. No matter how GM couches it, the company has created or retained a total of 7,000 jobs this year, and its total reinvestment in US production is around $1 billion. But these decisions are business ones, not political ones – timing the announcements to make them seem inspired by economic policy, or the political situation, is simply smart PR. Related Video: Image Credit: Bill Pugliano/Getty Images Celebrities Government/Legal Buick Cadillac Chevrolet GMC

GM and Ford quarterly sales continue to slump in China

BEIJING — General Motors and Ford announced their quarterly sales in China fell, albeit at a slower pace sequentially, as the U.S. automakers were hit by a slowing economy amid the Sino-U.S. trade war. GM's vehicle sales in China for the quarter ended June 30 dropped 12.2%, while Ford's sales slumped by 21.7%. While GM also suffered from heightened competition in its key mid-priced SUV segment, Ford was hurt by the limited new models for customers to choose from. For the first quarter of this year, Ford's sales in China tumbled 35.8 percent while GM's skid 17.5 percent. Still, the numbers from GM, the second biggest international automaker in China by sales, and Ford portend more uncertainty for the industry which is trying to rebound from a downward spiral that led to its first annual sales decline last year in more than two decades. GM delivered 1.57 million vehicles in China in the January-June period this year, while Ford delivered 290,321 vehicles. China's factory activity shrank more than expected in June, highlighting the need for more economic stimulus amid higher U.S. tariffs and weaker domestic demand. Annual car sales in China fell last year for the first time since the 1990s, and they are expected to fall this year too. Sales tumbled 16.4% in May from the same month a year prior, the China Association of Automobile Manufacturers (CAAM) said. That marked the 11th consecutive month of decline and followed falls of 14.6% in April and 5.2% in March. U.S. car companies' share of total China passenger vehicles sales fell to 9.6% in the first five months of this year from 10.9% in the year-ago period, according to CAAM. Over the same period, German car makers' share has risen to 23.3% from 20.9% and Japanese auto makers' to 21.3% from 17.3%. CAAM is set to announce June sales next week, which industry analysts forecast will be negative.   New models In China, GM has a joint venture with SAIC Motor Corp, in which the Buick, Chevrolet and Cadillac are made. It also has another venture, with SAIC and GuangxiAutomobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of GM's affordable brand Baojun dropped 31.8% for the latest quarter. But luxury brand Cadillac's sales jumped 36.6%. GM sold 3.64 million units in China last year, down from 4.04 units in 2017. Ford makes cars in China through its joint venture with Chongqing Changan Automobile Co and Jiangling Motors Corp (JMC).

Fingers point to dragged-out NHTSA investigation after second death by ARC airbag inflator

Safety advocates have increased criticism of the federal government's National Highway Traffic Safety Administration after an exploding airbag inflator that's been under investigation for more than six years killed a second person.  On Wednesday, NHTSA posted recall documents filed by General Motors that revealed the second death, the driver of a 2015 Chevrolet Traverse SUV with an inflator made by Tennessee company ARC blew apart, spewing shrapnel. No details were given about where and when the death occurred. NHTSA has said that ARC Automotive of Knoxville has manufactured about 8 million inflators used nationwide in vehicles made by General Motors, Fiat Chrysler (now Stellantis), Kia and Hyundai. “NHTSA should have been all over this along time ago,” said Rosemary Shahan, president of California-based Consumers for Auto Reliability and Safety. “There's just no denying that itÂ’s a (safety) defect.” NHTSA, the agency charged with with keeping America's automobiles and roads safe, began investigating ARC inflators in July of 2015 after two people were injured by flying shrapnel. The investigation became more urgent in 2016, when a Canadian woman driving an older Hyundai Elantra was killed by metal airbag fragments. Public records show only a little progress on the probe. In April, the agency posted a memo in saying it was reviewing volumes of information it received from ARC. Safety advocates such as Shahan say that the dragged-out investigation is an example of the deadly consequences that can result from an understaffed and underfunded agency. The second death should not have happened, Shahan said, and vehicles with faulty ARC inflators should have been recalled faster. The agency, Shahan said, is “grossly underfunded," but it still should have sought recalls of the ARC inflators. She said historically NHTSA has taken little action during Republican administrations but has ramped up safety efforts when Democrats control the White House. Messages were left Wednesday by the Associated Press seeking comment from NHTSA and ARC. At this time, relatively few vehicles are effected. The GM recall covers only 550 Chevy Traverse SUVs from the 2013 through 2017 model years, as well as Buick Enclave SUVs from 2008 through 2017. The automaker said in a statement that the faulty front driver's airbag inflators were either installed at the factory or in replacement airbag modules.