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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.

Next-gen Cadillac Escalade spied with grille uncovered for the first time

The next generation of full-size GM SUVs is coming, and the Cadillac Escalade may the most anticipated reveal of them all. Lincoln has blown up the scene with its excellent Navigator, and Cadillac needs something revolutionary in response. Our latest set of spy photos show us what appears to be a camouflaged Escalade, but it’s missing some of the camo covering the grille. None of our previous Escalade spy photos have given us this detailed of a look at the grille before. The grille design looks like a blown-up version of the XT6 right now. ItÂ’s not the exact same pattern as we see on the Sport or Premium Luxury trims of that car, but the design looks like it comes from a similar mind. ThereÂ’s certainly no mistaking it for anything other than a Cadillac, as the Yukon and Tahoe likely wonÂ’t be sporting such gaudy front pieces — the jury is still out on a potential High Country trim, though. This particular tester looks like it was caught on GMÂ’s proving grounds, as the driver unsuccessfully tries to hide his face from the camera. Just like previous spy shots, these feature the same rectangular exhaust outlets and independent rear suspension down below. We still have no idea what the rest of the SUV is going to look like, but as GM is wont to do these days, a big grille is a certainty now. The camouflage conceals just how far it stretches from one side to the other, but weÂ’ll be interested to see how much of the design language is ripped from smaller SUVs like the XT6 and XT5. We have a feeling Cadillac plans on giving us something new and game-changing with the Escalade; we just donÂ’t know if the styling is up to the task yet.

Cadillac could 'flourish' in Australia, says marketing chief

Cadillac might have its best product mix in recent history, and GM's luxury brand is looking to expand. In fact, it might even be making a trip Down Under, at least according to the company's global marketing chief.
Uwe Ellinghaus spoke with Australian site Car Advice at the Geneva Motor Show and said the brand could be quite successful there. "[The] goodwill that the Cadillac brand has is such a good starting base that once we get proper volume commitment and a dealer network behind it we can easily flourish," he said, though he warned that the plans are still in their earliest stages and years away. First, Cadillac will expand in markets with the highest possible sales, like China and Russia.
Ellinghaus said that the most likely models for Oz would be the SRX, Escalade and CTS; the latter would probably act as a replacement for the Holden Commodore. GM's Australian arm is ending local production in 2017, and there have been many rumors about what is happening to the big sedan. However, Ellinghaus admits exporting cars from the US to Australia is going to mean higher prices. In addition to the expense, Cadillac doesn't currently build any right-hand-drive models. It would likely take until the end of the decade before the Aussie models could be ready.