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GM reworking mandatory OnStar plans for some 2024 models

For the 2023 model year, GM added its OnStar and Connected Services plan as standard equipment to a large number of Buick, GMC, and Chevrolet vehicles. Folding the $1,500 retail price into the MSRPs of models like the GMC Acadia and Buick Encore plumped up prices beyond the usual year-on-year bumps. Looks like there's a reversal in play for 2024, GM Authority reporting that many of the models fitted with OnStar and Connected Services — now called OnStar Premium — will step down to three years of OnStar Remote Access standard.   OnStar Remote Access comes with these features: Remote key fob, vehicle locate, and remote personalization through mobile and in-vehicle apps. Three additional features can be added to the plan: OnStar Guardian, in-vehicle hotspot, and Super Cruise. Owners can also upgrade to OnStar Premium if they choose.  Higher trims like Buick's Avenir and GMC's Denali, plus the GMC Hummer and the Cadillac Escalade will retain OnStar Premium as standard equipment. That suite starts with Remote Access and adds: Automatic crash response, stolen vehicle assistance and recovery, OnStar Guardian, in-vehicle app access, unlimited streaming, three years of Super Cruise on vehicles with the hardware, and six months of SiriusXM radio. The Escalade puts a cherry on top with three years Sirius XM instead of six months. The Remote Access plan normally charges $14.99 per month. We're not sure yet if GM will subtract the cost of OnStar Premium from the MSRP and add the $540 for OnStar Remote Access, or if the trial period comes free of charge. Even if that's what happens, the change could take nearly $1,000 off the MSRP of a car like the GMC Acadia before any 2024 increases. We'll know more as the 2024MY models roll out and prices are announced. Related Video 2022 Buick Enclave Avenir revealed

GM cutting Chevy Sonic, Buick Verano production [UPDATE]

UPDATE: A previous version of this story indicated that Orion Assembly would be idled for seven weeks, from February 16 through April 6. This was incorrect. The factory will instead only be idled for the weeks of February 16 and April 6. The story has been edited to reflect this. General Motors has announced that the factory responsible for the Buick Verano and Chevrolet Sonic will be idled for the weeks of February 16 and April 6, with blame being placed on excess supply. The Orion Assembly plant, about 45 minutes north of GM's Renaissance Center headquarters, employs about 1,800 people, but they'll be given a pair of furloughs as inventories of the sub-compact Sonic and premium compact Verano reach 127 days and 84 days, respectively. That works out to 26,600 Chevys and 9,800 Buicks waiting for buyers. According to Automotive News, the compact Chevy sales bested the industry average in 2014, jumping up nine percent versus the the overall segment's eight-percent gain, while the Buick sedan's sales were down four percent. When asked about the shutdown, a GM spokesman told AN that it will "build to market demand," while also pointing out that the company did not comment on production plans. News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing Buick Chevrolet GM buick encore orion assembly

The UAW's 'record contract' hinges on pensions, battery plants

DETROIT - After nearly four weeks of disruptive strikes and hard bargaining, the United Auto Workers and the Detroit Three automakers have edged closer to a deal that could offer record-setting wage gains for nearly 150,000 U.S. workers. General Motors, Ford Motor and Chrysler parent Stellantis have all agreed to raise base wages by between 20% and 23% over a four-year deal, according to union and company statements. Ford and Stellantis have agreed to reinstate cost-of-living adjustments, or COLA. The companies have offered to boost pay for temporary workers and give them a faster path to full-time, full-wage status. All three have proposed slashing the time it takes a new hire to get to the top UAW pay rate. The progress in contract talks follows the first-ever simultaneous strike by the UAW against Detroit's Big Three automakers. The union began the strike on Sept. 15 in hopes of forcing a better deal from each major automaker. But coming close to a deal is not the same thing as reaching a deal. Big obstacles remain on at least two major UAW demands: restoring the retirement security provided by pre-2007 defined benefit pension plans, and covering present and future joint- venture electric vehicle battery plants under the union's master contracts with the automakers. On retirement, none of the automakers has agreed to restore pre-2007 defined-benefit pension plans for workers hired after 2007. Doing so could force the automakers to again burden their balance sheets with multibillion-dollar liabilities. GM and the former Chrysler unloaded most of those liabilities in their 2009 bankruptcies. The union and automakers have explored an approach to providing more income security by offering annuities as an investment option in their company-sponsored 401(k) savings plans, people familiar with the discussions said. Stellantis referred to an annuity option as part of a more generous 401(k) proposal on Sept. 22. Annuities or similar instruments could give UAW retirees assurance of fixed, predictable payouts less dependent on stock market ups and downs, experts said. Recent changes in federal law have removed obstacles to including annuities as a feature of corporate 401(k) plans, said Olivia Mitchell, a professor at the University of Pennsylvania Wharton School and an expert on pensions and retirement. "Retirees want a way to be assured they won't run out of money," Mitchell said.