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GM to idle car production at five factories as Americans continue CUV love affair

In case you needed another reminder that Americans have fallen out of love with sedans, General Motors today announced plans to idle five factories in January in a bid to cut its inventory to 70 days. Detroit-Hamtramck Assembly ( Buick LaCrosse, Cadillac CT6, Chevrolet Volt and Impala) and Fairfax Assembly in Kansas ( Chevy Malibu) will stop production for three weeks. Lansing Grand River ( Cadillac ATS and CTS, and Chevy Camaro) is going down for two weeks, while Lordstown, OH ( Chevy Cruze) and Bowling Green, KY ( Chevy Corvette) will go idle for a week each, Automotive News reports. GM's shutdown reflects a broader problem with the company's supply – at 847,000 vehicles, the company's supply increased unsteadily from a low of 629,000 units in January of 2016. That's more than a 25 percent increase in the past year. Citing information from Autodata, The Detroit News reports that at the end of November, GM had a 168-day supply of LaCrosses, 177 days' worth of Camaro, 170 days of Corvette, 121 days for Cruze, 119 days for ATS, 132 days for CTS, and 110 days of CT6. Meanwhile, inventory of the company's more popular vehicles is actually below the professionally accepted 60- to 70-day supply, The News reports. The Trax, Colorado pickup, and GM's full-size SUVs are sitting below 50 days and experiencing year-over-year sales increases. GM needs a rethink of its inventory levels, which is something that's apparently coming. "We're going to be responsible in managing our inventory levels," GM spokesman Jim Cain told The News. Another unnamed spokesman told Automotive News the company's day-to-day supplies would "fluctuate before moderating at year-end." But at least one analyst thinks this won't be the last time Detroit needs to stop production to level things out. "Incentives are elevated, residuals are declining, and rates are rising," Brian Johnson, an analyst with Barclays, told The News. "And while GM in particular may benefit in the months ahead from new product launches, it's important to recognize that GM's inventory is elevated at the moment, and it wouldn't surprise us if they need to announce another production cut – which could pressure the stock." Related Video: News Source: The Detroit News, Automotive News - sub. req.Image Credit: Paul Sancya / AP Plants/Manufacturing Buick Cadillac Chevrolet GM GMC Crossover SUV Sedan bowling green cadillac xt6 fairfax

NHTSA probes 2010 Chevy Tahoe for side airbag issue

After a person was killed in a rollover accident in a 2010 Chevrolet Tahoe in Texas in 2011, the National Highway Traffic Safety Administration is considering whether to conduct a deeper investigation into a potential problem with the model's side airbags. According to the petition filed with the government agency, the SUV's rollover side curtain airbag deployed in the accident, but the design allegedly still allowed some of the occupants in the second- and third-row seats to be ejected from the vehicle. One of them died in the crash. Based on NHTSA's preliminary review, this is the only report of this type of incident happening in a 2007-2015 Tahoe or GMC Yukon. "GM investigated the complaint that is the basis of the petition and found no defect trend," company spokesperson Alan Adler said to The Detroit News, and said the automaker will cooperate with the feds. Still, "a defect petition has been opened to evaluate the issue and make a grant or deny decision," according to NHTSA. Depending on the agency's findings, this could lead to a full investigation and possible recall affecting an estimated 58,000 vehicles. INVESTIGATION Subject : Rollover Side Curtain Air Bags Date Investigation Opened: JUN 11, 2015 Date Investigation Closed: Open NHTSA Action Number: DP15004 Component(s): AIR BAGS All Products Associated with this Investigation Vehicle MakeModelModel Year(s) CHEVROLET TAHOE 2010 CHEVROLET TAHOE HYBRID 2010 Details Manufacturer: General Motors LLC SUMMARY: The Office of Defects Investigation (ODI) has received a petition requesting an investigation of alleged defects that can cause occupant ejections during rollover crashes in certain General Motors vehicles. The petition alleges the defects allow second and third row occupants to be ejected despite the deployment of rollover side curtain air bags. The petition cites a 2011 Texas crash involving a model year 2010 Chevrolet Tahoe, which allegedly resulted in multiple occupants to be ejected. One of the ejected occupants was fatally injured. ODI's preliminary review of its consumer complaint data found no similar reports of occupant ejections on 2007-2015 Chevrolet Tahoe and GMC Yukon vehicles. ODI also reviewed Early Warning Reporting data submitted by General Motors. A defect petition has been opened to evaluate the issue and make a grant or deny decision.

GM program sees dealers taking on way more loaner cars

Given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. Bring your car into the dealership for service, and you may need a loaner car in exchange. And with so many recalls being carried out, that means a lot of loaners – especially at General Motors dealerships. That could be one of the reasons why GM is massively expanding its loaner fleet program. While many Chevrolet and Buick-GMC dealerships have an on-site rental car location operated by a third party like Enterprise (which may or may not provide a GM vehicle), others manage their own loaner fleets. But while the range of dealerships operating such fleets was once small, reports Automotive News, the number has been growing rapidly: from the locations responsible for only 20 percent of those brands' sales two years ago to about 90 percent today. The impetus for that growth comes down to a massive expansion of GM's Courtesy Transportation Program. The initiative encourages dealers to ramp up their loaner fleet to a maximum size determined by GM, with a mix determined by the dealer itself, so that a showroom in Texas can be bolstered with a fleet of pickup trucks and a dealer in California can employ more Volt and Camaro Convertible loaners. The dealership gets a $500 credit for each vehicle its puts in its fleet, and can use those vehicles as loaners for service customers, as multi-day test drivers or to rent out separately. The vehicles remain in the dealer's fleet for 90 days or 7,500 miles, then they can be sold as used, but with new-car incentives. The dealer gets a fleet of loaners, customers get to use the loaners, try out a new car overnight or buy a barely used car with attractive incentives, and GM gets to clock more sales. But therein lies the kicker: the automaker counts the dispatch of the loaner new vehicle to the dealership as a new-car sale, which could end up distorting its sales figures. Counting loaner vehicles as sold vehicles is something of an industry-standard practice, but given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. One dealership - Paddock Chevrolet in Kenmore, NY, for example - had no loaner fleet two years ago, but now runs a fleet of 50 vehicles. Multiply that by the 4,000 or so dealers GM has across America and you're talking about the potential for hundreds of thousands of these sorts of sales.