2014 Cadillac Xts Luxury on 2040-cars

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GM to cut production at 5 plants in North America, kill several models

DETROIT/WASHINGTON — General Motors Co said on Monday it will cut production of slow-selling models and slash its North American workforce in the face of a stagnant market for traditional gas-powered sedans, shifting more investment to electric and autonomous vehicles. The announcement is the biggest restructuring in North America for the U.S. No. 1 carmaker since its bankruptcy a decade ago. GM said it will take pre-tax charges of $3 billion to $3.8 billion to pay for the cutbacks, but expects the actions to improve annual free cash flow by $6 billion by the end of 2020. GM plans to halt production next year at three assembly plants: Lordstown, Ohio, Hamtramck, Michigan, and Oshawa, Ontario. The company also plans to stop building several models now assembled at those plants, including the Chevrolet Cruze, the Cadillac CT6 and the Buick LaCrosse, the sources said. Sources said the Chevrolet Volt, Impala and Cadillac XTS would also be discontinued. Signs of the demise of six passenger-car models have been swirling since July. Plants in Baltimore, Maryland, and Warren, Michigan, that assemble powertrain components have no products assigned to them after 2019 and thus are at risk of closure, the company said. It will also close two factories outside North America, but did not identify those plants. The AP reported that 14,700 jobs would be affected. Some 8,100 of those would be white-collar jobs reduced through buyouts or layoffs. The No. 1 U.S. automaker signaled the latest belt-tightening in late October when it offered buyouts to 50,000 salaried employees in North America. The company also said it will cut executive ranks by 25 per cent to "streamline decision making." Some 6,000 factory workers could lose their jobs or be transferred to other plants. Its shares were last up 6.2 percent at $38.16. Tariff 'headwinds' and cost-cutting GM Chief Executive Officer Mary Barra told reporters on Monday the company can reduce annual capital spending by $1.5 billion and increase investment in electric and autonomous vehicles and connected vehicle technology because it has largely completed investing in new generations of trucks and sport utility vehicles. Some 75 percent of its global sales will come from just five vehicle architectures by early in the 2020s. It plans to reduce annual capital spending to $7 billion by 2020 from an average of $8.5 billion a year during the 2017-2019 period.

Cadillac planning more Vsport models

There's a new intermediate class of luxury performance cars emerging. Audi has been doing it for years with its S-line bridging the gap, in many cases, between the standard fare and the full-on RS performance range. BMW's getting in on it with the M Sport line slotting in below the full M models. And now Cadillac is joining the fun with its Vsport offerings.
Models like the CTS Vsport and XTS Vsport are packing a new 3.6-liter twin-turbo V6 with 410 or more horsepower (along with bigger wheels and brakes) to slot in between the standard model and any impending V variant. Well, it appears Cadillac isn't about to stop there.
Speaking with The Detroit News, Cadillac product chief Hampden Tener revealed that, based on the response to the XTS Vsport, the brand is planning more Vsport models. He did not, however, indicate which would be the next to get the slightly sportier treatment. With the full ATS-V expected to pack a version of the same engine powering the aforementioned XTS and CTS Vsport models, an ATS Vsport would have to pack a smaller engine to fit in below. That only leaves the SRX crossover, Escalade SUV and the upcoming ELR hybrid. Food for thought.

Cadillac issues stop-sale on recalled CTS, SRX

General Motors has issued a stop-sale order on the Cadillac CTS and SRX, both of which were recalled late last month. Why the stop-sale after all this time? Well, um, GM apparently doesn't know how to fix them.
The stop-sale covers all used Cadillac CTS sedans, coupes and wagons from model years 2003 to 2013, as well as new 2014 coupes and wagons. The SRX crossover stop-sale, meanwhile, only covers used vehicles from model years 2004 to 2006.
Automotive News reached out to GM spokesperson Alan Adler, who told the news pub that the company's engineers were "looking at one common solution" for the affected vehicles, although "they don't have it yet."