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GM CEO Barra says 'we are selling every truck we can build'

DETROIT — General Motors Chief Executive Mary Barra said on Monday the automaker is "selling every truck we can build" and expanding North American truck-building capacity, even as U.S. gasoline prices hit record highs. Barra made her comments during the automaker's annual shareholder meeting. GM is pursuing a two-track strategy: Investing heavily in electric vehicles for North America, China and other markets, and funding those investments by trying to maximize profits from its North American combustion pickup truck and large SUV lineups. Barra said GM is planning higher-priced versions of its Silverado large pickup and its large SUV models. GM and its Detroit rivals Ford Motor Co and Stellantis NV rely heavily on sales of large pickup trucks and SUVs for global profits. High U.S. gasoline prices in the past have undermined consumer demand for relatively inefficient models. Nominal pump prices hit an average of above $5 a gallon for the first time ever last week, the federal government said Friday. GM is ramping up production of EVs. Barra said the Cadillac Lyriq electric sport utility is sold out through 2023. In response to shareholder questions, Barra said the "clear priority" for using cash generated by its operations is to "accelerate our EV plans." She did not rule out share buybacks or other approaches to returning cash to shareholders. GM still expects to increase production this year by 25-30%, despite continuing pressure on semiconductor supplies globally. Barra said GM is working to redesign vehicles to reduce the number of processors required by 95%. Barra serves as GM's board chair and CEO. GM shareholders overwhelmingly rejected a proposal to separate those roles.

Buick Encore, Chevy Trax reportedly dead after 2022

The Buick Encore will not get an encore, and the Chevrolet Trax is dead in its tracks. Separate unverified reports say the two crossovers, which are essentially identical underneath the sheetmetal, will retire at the end of the 2022 model year without being directly replaced. Citing anonymous sources, enthusiast website GM Authority wrote that production of the Encore and the Trax is scheduled to end in the third quarter of 2022. Both models are manufactured in Bupyeong-gu, South Korea, and General Motors will reportedly use the extra production capacity to build more examples of the Trailblazer, which outsold the Encore and the Trax combined by a significant margin in 2021. General Motors hasn't commented on the report, but we wouldn't be surprised if the end is indeed near for the Encore and the Trax. Buick released the Encore for the 2013 model year, and Chevrolet launched the Trax for 2015, but the model made its debut as the Opel Mokka in 2012. It's at the end of its life cycle, and sales figures reflect this: 20,072 units of the Encore were sold in America in 2021, a drop of 52% compared to 2020, while 42,590 examples of the Trax found a home, a 60% decline. It's further proof that Americans don't like small cars. Viewed in that light, the decision not to replace either crossover makes perfect sense. If the report is accurate, the Encore GX (which is not related to the Encore in any way) will enter the 2023 model year as Buick's entry-level model. The situation is a little more complicated at Chevrolet: The pocket-sized Spark is on its way out in 2022 as well, meaning that the Trailblazer will become the entry point into the range. It's a different story in Europe: Opel, which is now part of the Stellantis group, released the second-generation Mokka in June 2020.

GM won't pay owners of recalled cars for lost value

Kenneth Feinberg, the man in charge of the General Motors compensation fund dealing with the its widespread ignition switch woes, has issued an informal, two-letter response to the plaintiffs in more than 70 lawsuits seeking redress for lost resale value of their Cobalts: "No." The cases were recently combined into one, but Feinberg told The Detroit News that the fund will deal "only with death and physical injury claims," and that "perceived diminished value" will get no consideration.
ALG, the firm specializing in establishing residual values, determined that Cobalt owners had lost $300 compared to the segment competition and doesn't envision any long-term effects from the recall situation. Feinberg's statement comes in advance of public details on how the compensation fund will work and adheres to GM's long-held position on the matter. The company has already asked a judge to throw out such suits using the pre-bankruptcy defense, even as it stopped using that defense in cases of injury and death.
With plenty of potential gain from the GM suit, however, don't expect the plaintiffs to give up yet. When Toyota was sued for the same reason during the unintended acceleration debacle, it eventually settled the case for between $1 billion and $1.4 billion just to get it over with. Since the 85 law firms involved in the Toyota litigation took home more than $250 million of that total, we shouldn't expect the attorneys to give up on a GM payout, either.