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Even if GM does close all 5 of those plants, it'll still have too many
Wed, Nov 28 2018DETROIT — 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.
2018 Buick Enclave launches luxury Avenir trim
Wed, Apr 12 2017Remember the shapely Buick Avenir Concept from the 2015 Detroit Auto Show? Well, this isn't that, even if they both share the same name. Meet the Buick Enclave Avenir, a new trim built atop Buick's redesigned 2018 Enclave seven-passenger crossover. Think of it as Buick's version of GMC's Denali trim and you'll be on the right track. As the brand's new top trim level, everything that's normally optional in the Enclave comes standard in the Avenir, along with a bunch of exclusive content. And this is just the first application of the Avenir package for Buick – expect the rest of the TriShield brand's products to get a similar makeover in due time. All Avenir models from Buick will get what the brand is calling a three-dimensional mesh grille with a new set of chrome wings. From there, the Enclave edition bundles unique pearl nickel 20-inch wheels, a Rear Camera Mirror like the one seen from Cadillac, and a new kind of LED headlamps that use something called Evonik Acrylite lighting technology. An in-car air ionizer promises to keep the cabin smelling fresh. The rest of the Enclave package sounds pretty good, too. It's got a standard 3.6-liter V6 engine with 302 horsepower and 260 pound-feet of torque, mated to a nine-speed automatic transmission. Front-wheel drive is standard, and all-wheel drive is optional. A tow rating of 5,000 pounds is standard fare for this class, as are seven seats inside. A frameless eight-inch LCD screen and integrated 4G wireless connectivity are other family-friendly highlights. We expect more Avenir-branded models to make their appearance in the Buick showroom soon. In the meantime, check out the Enclave Avenir in the image gallery above, and stay tuned for more from New York. Related Video:
GM earnings rise 1% as buyers pay more for popular pickups
Thu, Aug 1 2019DETROIT — General Motors said Thursday that higher prices for popular pickup trucks and SUVs helped overcome slowing global sales and profit rose by 1% in the second quarter. The Detroit automaker said it made $2.42 billion, or $1.66 per share, from April through June. Adjusting for restructuring costs, GM made $1.64 per share, blowing by analyst estimates of $1.44. Quarterly revenue fell 2% to $36.06 billion, but still beat estimates. Analysts polled by FactSet expected $35.97 billion. Global sales fell 6% to 1.94 million vehicles led by declines in North America and Asia Pacific, Middle East and Africa. The company says sales in China were weak, and it expects that to continue through the year. In the United States, customers paid an average of $41,461 for a GM vehicle during the quarter, an increase of 2.2%, as buyers went for loaded-out pickups and SUVs, according to the Edmunds.com auto pricing site. The U.S. is GM's most profitable market. Chief Financial Officer Dhivya Suryadevara said she expects the strong pricing to continue, especially as GM rolls out a diesel pickup and new heavy-duty trucks in the second half of the year. "We think the fundamentals do remain strong, especially in the truck market," she said, adding that strength in the overall economy and aging trucks now on the road should help keep the trend going. Light trucks accounted for 83.1% of GM's sales in the quarter, and pickup truck sales rose 8.5% as GM transitioned to new models of the Chevrolet Silverado and GMC Sierra, according to Edmunds, which provides content to The Associated Press. As usual, GM made most of its money in North America, reporting $3 billion in pretax earnings. International operations including China broke even, while the company spent $300 million on its GM Cruise automated vehicle unit. Its financial arm made $500 million in pretax income. Suryadevara said GM saw $700 million in savings during the quarter from restructuring actions announced late last year that included cutting about 8,000 white-collar workers through layoffs, buyouts and early retirements. The company also announced plans to close five North American factories, shedding another 6,000 jobs. About 3,000 factory workers in the U.S. whose jobs were eliminated at four plants will be placed at other factories, but they could have to relocate. GM expects the restructuring to generate $2 billion to $2.5 billion in annual cost savings by the end of this year.