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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.

GM may kill 6 car models as it works with UAW to tackle sales slump

The president of the United Auto Workers union said on Thursday the union is talking with General Motors about the potential threat to plants and jobs from slumping U.S. car sales. GM's response will be more trucks and SUVs, and sources say at least six slow-selling car models may be killed off. "We are talking to (GM) right now about the products that they currently have" at underused car plants such as Hamtramck in Michigan and Lordstown in Ohio, and whether they might be replaced with newer, more popular vehicles such as crossovers, Dennis Williams told reporters. "We are tracking it (and) we are addressing it," Williams added. GM has cut shifts at several U.S. plants this year as inventories of unsold cars have ballooned. Industry analysts said more jobs could be at risk as the automaker wrestles with permanently shrinking production of small and midsized sedans. GM is reviewing whether to cancel at least six passenger cars in the U.S. market after 2020, including the Chevrolet Volt hybrid, which could be replaced in 2022 with a new gasoline-electric crossover model, Reuters has learned from people familiar with the plans. Other GM cars at risk include the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala and Chevrolet Sonic, sources said. Some analysts have singled out GM's Hamtramck plant in Detroit as one of the most vulnerable because of plummeting car sales. The plant, which opened in 1985, builds four slow-selling models: Buick LaCrosse, Chevrolet Impala, Cadillac CT6 and Chevrolet Volt. In the first half, it built fewer than 35,000 cars, down 32 percent from the same period in 2016, according to suppliers familiar with GM's U.S. production schedule. The typical GM assembly plant builds 200,000-300,000 vehicles a year.COMING ATTRACTIONS: TRUCKS AND SUVS GM must "create some innovative new products" to replace slow-selling sedans "or start closing plants," said Sam Fiorani, vice president of AutoForecast Solutions. The auto maker already has begun to shift future production plans from cars to trucks, according to Morgan Stanley auto analyst John Murphy. He estimates that fewer than 10 percent of the new vehicle models that GM will introduce over the next four years will be passenger cars, with the rest divided among trucks, SUVs and crossovers. GM plans to add production of the new Cadillac XT4 crossover next year to its Malibu sedan plant in Fairfax, Kansas.

Next Cadillac Escalade's interior spied for the first time

Update: Now that new spy photos of another large GM SUV have surfaced, we believe these shots show us a GMC Yukon interior, not a Cadillac Escalade. You can see the new spy shots here that depict a much more upscale vehicle interior compared to the fuzzy center stack shown in the shots of the Yukon. The new Cadillac Escalade has a lot of work to do in order to properly compete with Lincoln's wonderfully luxurious Navigator. These interior spy photos are our first look at what Cadillac is working with on the inside of its new luxury truck. We won't make final judgements, as this vehicle is still a prototype and subject to change. However, a few key bits are noticeable from the fuzzy photos. As expected, Cadillac's CUE infotainment and center stack is nowhere to be seen. Replacing it is a new interior design language, with a tablet-like screen that seems to rise out of the sloped stack on top. Below the screen is a strip of stitched leather and a couple prominently placed air vents. To the left of this area is what appears to be a push-button gear shifting system, replacing the column-mounted shifter currently in use. Below all that on a lower level of the center stack are all the climate controls, along with what look like physical buttons for what could be audio-related controls. Does it look as luxurious as the Lincoln? Not with all the coverings and shrouding it doesn't, which means we'll have to wait until we get the full picture. One thing that's clear is that the interior design is definitely going to be wildly different than the current Escalade. That center stack flows downward as one sloping piece into the high and bulky center console area. This design looks like it brings the center console further downward, and also uses a multi-tiered look. It's tough to read what's on the screen, but the software looks like the same stuff we got a preview of on the new Cadillac CT5 and CT4 sedans. As for the exterior shots, there's almost nothing that we haven't already gotten a taste of in previous spy photos. The independent rear suspension is a go, as are what appear to be massive headlight and LED DRL fixtures. If you look through the wrapping, you can make out how far up and down the lighting fixtures stretch ... or perhaps they're separate units altogether. It's tough to tell at this point.