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GM CEO to meet with U.S. lawmakers over job cuts

WASHINGTON — General Motors Co Chief Executive Mary Barra plans to visit Capitol Hill next week to discuss the company's plans to halt production at five plants in North America next year and cut up to 15,000 jobs, two congressional aides said on Friday. GM has come under harsh criticism from lawmakers from both major political parties, and from President Donald Trump, since Monday when it announced the biggest restructuring for the U.S. No. 1 carmaker since its bankruptcy a decade ago. Barra is expected to meet with lawmakers from Michigan and Ohio, where GM plans to shutter three plants, as well as senior leaders in Congress. GM did not immediately comment. Barra has been calling lawmakers this week to explain the decision to end production. Trump has threatened to revoke subsidies for GM. The Detroit automaker plans to halt production next year at three assembly plants: the Lordstown small-car factory near Youngstown, Ohio; the Detroit-Hamtramck complex in Detroit; and the Oshawa, Ontario, assembly complex near Toronto. It will also stop building several models now assembled at those plants, including the Chevrolet Cruze, the Chevrolet Volt hybrid, the Cadillac CT6 and the Buick LaCrosse. Additionally, GM plans to shutter the Warren transmission plant outside Detroit and a plant that makes electric motors and drivetrains outside Baltimore, Maryland. The Cruze compact car will be discontinued in the U.S. market in 2019, although GM may continue building it in Mexico for other markets, Barra said. Reporting by David Shepardson. Related Video:

Cadillac: The standard of what?

Cadillac's tagline "Standard of the World" goes back to 1908 when it won the Dewar Trophy. While you might think that the moniker and the trophy have something to do with a feat of racing and daring-do against a cadre of British, French, and German marques, it's nothing of the sort. Rather, Cadillac achieved the trophy because of interchangeable parts. The parts they were producing back then were so well-made that Henry Leland, who established Cadillac, was able to disassemble three Model Ks, mix up the parts, and then put together three functioning cars. This amazed the Brits who handed him the trophy, and the "Standard of the World" was born. During the past several months, Cadillac has been producing news releases that would seem as though the company is the Standard of the World: "Cadillac Global Sales Rise 44.2 percent in January ... 18 percent in February ... 22.1 percent in March. . .40.9 percent in April ... 33.8 percent in May ... 7.2 percent in June." Like the Dewar Trophy being about manufacturing not performance, things are not necessarily what they seem. That is, Cadillac's growth is predicated on performance in China, not in the US. Through June, its China sales are 80,357 vehicles for the first five months of 2017, versus 72,073 in the US. The China number is a 75.4-percent year-over-year increase while the US number is a 1.6-percent decrease. For the entire globe, Cadillac has sold 164,174 vehicles. Of them, 65,250 were the XT5. That was followed by the ATS, at 34,277 units. In the US, the XT5 is doing reasonably well, as it has moved 29,798 units during the first six months. The ATS, conversely, is doing not particularly well, as it is down 26.2 percent with sales at just 7,209 for the year so far. To put that into some sort of context, know that Cadillac has sold 7,370 copies of the generally derided XTS, which is down 24.7 percent. The CTS is down 36 percent at 5,059 units, and the only other car in the lineup (we'll pretend that the ELR doesn't exist anymore and it shortly won't), the CT6 sedan, is up 172.7 percent – but they have sold only 5,397 CT6s. While Caddy talks a good game about competing with the likes of the BMW 5 Series and the Mercedes E-Class, know that those two sedans have been sold 17,036 and 20,783 times this year in the US respectively. So what is Cadillac chief Johan de Nysschen to do? According to Reuters, it is to cull the lineup.

New Takata problem results in recall of 414 GM vehicles

An airbag-inflator rupture discovered by Takata during testing has resulted in a new recall affecting 414 vehicles from General Motors, including 395 of them in the US. This latest campaign covers 2015 model-year examples of the Buick LaCrosse, Cadillac XTS, Chevrolet Camaro, Equinox, Malibu, and GMC Terrain. There are no reported breaks in any of these vehicles on the road, and the company estimates only one percent of them actually have the faulty parts. According to documents submitted to the National Highway Traffic Safety Administration (as a PDF), one side-airbag inflator failed a cold test at -40 Fahrenheit "releasing high pressure gas and propelling the separated components apart." The supplier told GM about the failure the next day. In these vehicles, the safety device might not only burst but the bag could inflate incorrectly, as well. GM and Takata say that a cause is not yet known, but they are "conducting an investigation." GM will begin notifying affected owners via overnight mail on Oct. 19. Dealers will replace the side airbag modules on all of the affected vehicles with new components outside of the suspect lot. All of the removed parts will also be collected for further study. Takata's faulty front airbag inflators have resulted in a serious scandal for the supplier. Initial figures indicated 34 million US vehicles are need of repair, though more recent figures have knocked that down to 23.4 million bad parts in 19.2 million automobiles. GM was already among the dozen automakers with models to fix, and some of its pickups were affected, along with the Saab 9-2X and Pontiac Vibe. GM Statement: General Motors is recalling 395 cars and crossovers in the U.S. because one of the front seat side air bags inflators may be defective. In the event of a deployment, the air bag's inflator may rupture and the air bag may not properly inflate. The rupture could cause metal fragments to strike the vehicle occupants, potentially resulting in serious injury or death. GM is unaware of any incidents involving vehicles with these components, which were part of a lot in which one inflator failed acceptance testing at the supplier. Dealers will replace the side air bag module or modules in affected vehicles. Including Canada, Mexico and exports, the total population of the recall is 414, GM estimates 1 percent of the recalled vehicles may have the defect.