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GM is quietly slashing prices on base models

While General Motors' fourth quarter financial figures haven't yet been released, the automaker seems to be weathering a potentially rocky time well, even beating third-quarter projections last year. To keep the climb going, the company is launching new base trims for several popular models that make them cheaper than ever but with tight dealer margins. The new entry-level trims are the Chevrolet Cruze L, Equinox L, GMC Terrain SL and Buick LaCrosse 1SV. Buyers lose some content by picking them, but the prices are slashed. According to Cars Direct, the biggest savings are on the LaCrosse, where customers pay $31,065, plus $925 destination, $2,570 less than the previous base 1SB trim but must accept things like 17-inch wheels and no cargo net in the back. If you're wondering how Buick can remove only a little equipment but cut the price so much, it's because the company also slashed dealer margins. According to Cars Direct, the difference between the invoice and MSRP for the LaCrosse 1SV is only around $150, compared to around $1,350 before. The disparity is even greater for the Cruze with an $81 difference in the prices, compared to about $600 for the LS version. Showrooms are expected to keep very low stocks of these trims, though. "Dealers use such vehicles to get people in the door, but they do not generally want to do high volumes of these strippers. The margins are next to nothing; they don't make much money off these cars," said Ed Kim, Vice President of Industry Analysis for AutoPacific to Autoblog. Dealers are also expected to advertise that these new base trims undercut major competitors. For example, the Cruze L rings up for about $2,320 less than a Honda Civic LX, according to Cars Direct. One potential drawback for buyers is that these models might not be eligible for incentives. While the attractive prices might get customers into dealers, folks may not actually end up driving home with these entry-level models. Kim indicated base trims also make up a small portion of the sales mix. "Consumers aren't asking for stripped out vehicles, even at the low end of the marketplace," he said. Featured Gallery 2015 Chevrolet Cruze View 9 Photos News Source: Cars DirectImage Credit: Chevrolet Buick Chevrolet GM GMC Car Buying Car Dealers Crossover Sedan gmc terrain cheap cars

Even if GM does close all 5 of those plants, it'll still have too many

DETROIT — General Motors' monumental announcement on Monday that it will close three car assembly plants and two powertrain plants in North America and slash its workforce will only partially close the gap between capacity and demand for the automaker's sedans, according to a Reuters analysis of industry production and capacity data. Sales of traditional passenger cars in North America have been declining for the past six years and are still withering. After GM ends production next year at factories in Michigan, Ohio and Ontario, it will still have four U.S. passenger-car plants — all operating at less than 50 percent of rated capacity, according to figures supplied by LMC Automotive. In comparison, Detroit-based rivals Ford and Fiat Chrysler Automobiles will have one car plant each in North America after 2019. The Detroit Three are facing rapidly dwindling demand for traditional passenger cars from U.S. consumers, many of whom have shifted to crossovers and trucks. Passenger cars accounted for 48 percent of retail light-vehicle sales in the United States in 2014, according to market researchers at J.D. Power and Associates. This year, sedans will account for less than a third of light vehicle sales. That shift in turn has left most North American car plants operating far below their rated capacities, while many SUV and truck plants are running on overtime. The collapse in passenger-car demand is a challenge for nearly all automakers in the United States, including Japan's Toyota and Honda, which have the top-selling models in the compact and midsize car segments. Toyota executives said last month they are evaluating the company's U.S. model lineup. But Toyota also plans to build compact Corolla sedans at a new $1.6 billion factory it is building in Alabama with partner Mazda. The obstacles facing GM in its plans to close more auto factories became apparent on Tuesday as U.S. President Donald Trump threatened to block payment of government electric vehicle subsidies to GM. While it is not certain that Trump unilaterally has the power to do that, he made it clear he intends to use his office to pressure the company to keep open a small car plant in Ohio that GM says will stop building vehicles in March.

Buick's new logo ditches the ring, levels the shields

Buick's logo is about to receive a relatively major update. The new-look emblem appeared in a trademark filing in March 2022, and a leaked image posted on social media has given us a better look at the design that should appear on production cars in the not-too-distant future. Published on Instagram by an account called Buick_Saudi_Arabia, the photo shows what seems to be Buick's new logo on the middle of a steering wheel. The changes made aren't groundbreaking, but they're certainly noticeable. The ring is gone, and the red, white, and blue shields are separated from each other and positioned on the same level. As of writing, the shields are staggered and surrounded by a ring.           View this post on Instagram                       A post shared by Buick Saudi Arabia (@buick_saudi_arabia) One question that comes to mind is: why now? Buick has used its current logo for decades without significantly updating it, so what prompted the company to give the design a makeover? Several factors undoubtedly influenced this decision, but one that's worth shining light on is that the brand is no longer twinned with Germany-based Opel. For many years, some Opel-designed models made their way to the United States with Buick emblems on both ends. No one in Europe has heard of a Buick Regal; folks there know the sedan as the Opel Insignia. And, since the visual differences between these cars were often minor, using a Buick logo whose basic silhouette was similar to Opel's logo simplified the design process. Neatly integrating, say, Chevrolet's bowtie-shaped emblem into the Insignia's grille would have been harder, though more improbable acts of badge-engineering have been committed (the Ford Maverick was once a Nissan). General Motors sold Opel to PSA Peugeot-Citroen in 2017, and both carmakers are now part of Stellantis, so Buick's trans-Atlantic design ties have been cut. Losing the Opel connection gives Buick's design team more leeway to experiment with new ideas, like a revamped logo. Keep in mind that nothing is official yet. Full details and an explanation of what the new logo means should emerge soon. Why the shields? Buick isn't rooted in sword-fighting, so why have shields appeared on its cars for over 60 years? The answer, according to Buick, is relatively vague. What's certain is that the tri-shield logo didn't appear on Buick's early cars.