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Cadillac and Buick boost GM's return to growth in China

BEIJING — General Motors on Monday said continued market recovery from the COVID-19 crisis helped its China vehicle sales grow 12% on year in July-September, marking the Detroit automaker's first Chinese quarterly sales growth in two years. The second-biggest foreign automaker in China by units — after Germany's Volkswagen AG — said on Monday it had delivered 771,400 vehicles in China in the third quarter. That followed a 5% fall in the second quarter, when parts of China were still emerging from virus-busting lockdown measures. GM has a Shanghai-based joint venture with SAIC making Buick, Chevrolet and Cadillac vehicles. It has another venture, SGMW, with SAIC and Guangxi Automobile Group, producing no-frills minivans and which has started manufacturing higher-end cars. Sales rose 26% for cars under its mass-market Buick brand in the third quarter versus the same period a year earlier, while those of premium brand Cadillac jumped 28%, GM said in a statement. Sales of its mass-market Chevrolet marque fell 20%. Sales of no-frills brand Wuling grew 26%, whereas those of mass-market Baojun vehicles tumbled 19%. "GM's compact models returned to four-cylinder engines and that helped sales growth," said LMC Automotive senior analyst Alan Kang, referring to an attempt to market cleaner but noisier three-cylinder versions. "Cadillac also has a more complete lineup this year." China's biggest automakers' association expects overall car sales to grow by double digits in July-September versus a year earlier. Makers such as Toyota, Honda and Geely saw sales jump in the just-finished quarter. GM has seen its China sales suffer in a crowded market and slowing economy. To revive its fortunes, it plans to have electric vehicles (EVs) make up over 40% of new models in the next five years in China, where the government promotes greener cars. The automaker's Wuling Hong Guang MINI EV, a micro two-door EV with a starting price of 28,800 yuan ($4,200), was China's biggest-selling EV in August. GM's sales fell 15% in 2019 from a year earlier to 3.09 million vehicles. The automaker delivered 3.65 million vehicles in 2018 and 4.04 million in 2017. Related Video:

Junkyard Gem: 1985 Buick Skyhawk Custom Coupe

General Motors began building cars on the compact J Platform in 1981, and J-based machinery stayed in production all the way through the 2005 Chevrolet Cavalier and Pontiac Sunfire. The best-known of the J-cars in North America was always the Cavalier, but The General's Pontiac, Oldsmobile, Buick and even Cadillac divisions each sold their own Js here. The Buick version was the Skyhawk, built for the 1982 through 1989 model years. Here's a sporty '85 Skyhawk coupe, found in a Northern California boneyard recently. The Custom trim level was the cheapest version of the Skyhawk in 1985, and the two door was the most affordable configuration (midgrade Skyhawks were Limiteds and the T-Type was at the top of the Skyhawk pyramid that year). The MSRP on this car started at $7,512 (about $21,220 in inflation-adjusted 2022 dollars), making it the least expensive new Buick offered for sale in the United States in 1985. The Skyhawk name had been used on the Buick version of the Chevrolet Monza during the 1970s. The Chevrolet-badged sibling of this car was much cheaper, with the list price of the base '85 Cavalier coupe set at $6,872 (around $19,410 today). There were cheaper new Chevrolets that year, of course; a new Chevette cost just $5,470, while the Isuzu-built Spectrum was $6,295 and the Suzuki-built Sprint a skinflinty $5,151. The base engine in the Custom and Limited was this 2.0-liter SOHC straight-four rated at 86 horsepower. A turbocharged 1.8-liter version with 150 horses was available for an extra 800 bucks ($2,260 now). A four-on-the-floor manual transmission was standard equipment in the 1985 Skyhawk, but the buyers of most of these cars insisted on automatics. The price for this one was $425 ($1,200 today). A five-speed manual cost just $75 ($210). Velour-ish upholstery in Bordello Red (Buick didn't use that name) was all the rage during the 1980s and well into the 1990s. This car's interior looks pretty nice, considering where it's parked. Community Buick GMC in Iowa is still in business today. The five-digit odometer means we can't know how many miles were on this car at the end. I brought a Chicago-made 1950s Pho-Tak Foldex 30 film camera with me to the junkyard that day, as one does, and I photographed the Skyhawk on Kodak Portra 160 film. The irritatingly perky Skyhawk owners in this TV commercial appear to be about one-third the age of typical mid-1980s Buick shoppers.

GM laying off more than 4,000 workers Monday morning

According to reports from Automotive News, The Detroit News, and CNN, General Motors plans to begin laying off more than 4,000 salaried workers starting Monday morning. In a statement to AN, a spokesperson for the automaker said, "We are not confirming timing. Our employees are our priority. We will communicate with them first." We've been expecting layoffs at General Motors since November, 2018. At the time, the Detroit-based automaker announced it would seek to shed 8,100 salaried employees, shut down five assembly plants in North America, and kill off several slow-selling models. One month earlier, GM offered buyout packages to 18,000 workers and said it would seek to cut its global workforce by 25 percent. A spokesperson said at the time the moves were "proactive steps to get ahead of the curve by accelerating our efforts to address overall business performance." The cost-cutting moves are expected to save GM up to $2.5 billion in 2019 and as much as $6 billion by 2020. David Kudla, CEO and chief investment strategist of Mainstay Capital Management, referred to the impending culling as "Black Monday" and told The Detroit News that the layoffs would begin around 7:30 a.m. and continue in waves throughout the coming days and weeks. GM plans to deliver on its fourth-quarter and full-year 2018 earnings report on Wednesday. President Donald Trump plans to deliver the annual State of the Union address a day earlier on Tuesday. We expect to hear plenty more from both sides over the next several days.