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Despite strong profits, GM still fighting flat market share

Looking at the progress General Motors has made since it entered bankruptcy, it's easy to forget that the company still has a long way to go before it's the juggernaut it once was. A recent report from Reuters points out that, while GM is making money, it isn't making any gains in terms of US market share. Quite the opposite, really. Consider this factoid: In 1963, nearly half of the cars sold in the United States were from Chevrolet, Cadillac, Buick, GMC or Pontiac. Now, the company's US market share is stagnant at 17.9 percent. That same number is half of just Chevy's 1963 market share. This is all despite GM going on a binge replacing or updating its models. "Market share increases are not instantaneous," Mark Reuss told Reuters at the 2014 Detroit Auto Show. "We've got a lot of baggage. Don't underestimate what people though of us, or these brands, through these hardships and 30 years." The reasons for the stagnant market share are numerous. Reuters points out that retooling of factories and a focus on limiting incentives are both good things for profit, but not necessarily for market share. There's also the troubling turnover of the brand's marketing department. These issues don't change the fact that Chevrolet has lost 1.4 percent of its market share in two years, and that Cadillac - arguably GM's most improved brand overall - has lost 1.2 percent in the same period. Part of that can be blamed on GM's avoidance of fleet sales in favor of more profitable customer sales. "Our focus has really been on retail and that's where we've got the growth," said Alan Batey, GM's interim global marketing boss. "We want to grow GM and that means growing market share and profits, but it's not at all costs," Reuss said. News Source: ReutersImage Credit: paul bica - Flickr CC 2.0 Earnings/Financials Buick Cadillac GM GMC sales profits

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.

2021 Cadillac Escalade getting a star-studded introduction

Now that Chevrolet's Tahoe and Suburban are out of the bag, it's Cadillac's turn to introduce its new body-on-frame SUV. The next-generation Escalade will make its public debut on Feb. 4, 2020. The Escalade could have been one of the stars of the 2020 Detroit Auto Show had the event not moved to June. That's far too late for Cadillac, so the company will introduce the model during a special event held in Beverly Hills, Calif. The date wasn't chosen at random; it's less than a week before the 2020 edition of the Academy Awards, an event Cadillac has partnered with for the past six years. It's reasonable to assume the Escalade will play a key role in the ritzy event. The Escalade won't look anything like its Chevrolet-badged siblings, as leaked images show a tall, upright rendition of Cadillac's shield-shaped grille, but we expect many similarities beneath the sheetmetal. It will be bigger and correspondingly more spacious than the outgoing model, and an independent rear suspension will make it more comfortable. Inside, the digital instrument cluster and the infotainment system's screen will blend into a single unit angled toward the driver. Powertrain specifications remain under wraps, though we expect a naturally-aspirated V8 will come standard. An earlier report claims the twin-turbocharged Blackwing engine available in the CT6 will not make its way to the Escalade, and we doubt Cadillac will follow Chevrolet's lead by making a 3.0-liter straight-six turbodiesel available at an extra cost. An electric model is in the works, however. The 2021 Cadillac Escalade will go on sale about halfway through next year with a base price in the vicinity of $80,000. It will again be available with a short or a long wheelbase. Once it's unveiled, the coast will be clear for GMC to round out General Motors' portfolio of full-size SUVs with new variants of the Yukon and the Yukon XL. They'll likely break cover during the first half of 2020.