2008 Gmc Acadia Slt-1 on 2040-cars

Auto blog

GM extends vehicle production cuts into mid-March due to global chip shortage

DETROIT — General Motors said on Tuesday it was extending production cuts at three North American plants until at least mid-March due to the global semiconductor chip shortage, while vehicles at two other factories would only be partially built. GM, whose shares dipped 1% after the announcement, did not disclose the impact volumes or say which supplier and vehicle parts were affected by the chip shortage. But it said it would focus on keeping production running at plants building its highest-profit vehicles, full-size pickup trucks and SUVs. GM said it intended to make up as much lost production as possible once the shortage chip eased. "Semiconductor supply remains an issue that is facing the entire industry. GM's plan is to leverage every available semiconductor to build and ship our most popular and in-demand products," GM spokesman David Barnas said. GM said it was extending downtime at its U.S. plant in Fairfax, Kansas, its Canadian factory in Ingersoll, Ontario, and its Mexican facility in San Luis Petosi until mid-March when it would reassess the situation, he said. In addition, GM would build but leave incomplete for final assembly vehicles at Wentzville, Missouri, and its Mexican plant at Ramos Arizpe. GM vehicles affected by the idled plants include the Chevrolet Malibu sedan, Cadillac XT4 SUV, Chevy Equinox, and GMC Terrain SUVs. Vehicles to be left incomplete for now included the Chevy Colorado, GMC Canyon pickups and Chevy Blazer SUV. This week, GM had said it was idling the three factories where it has now extended downtime and said it would halve production at a plant in South Korea. The chip shortage has affected many automakers, including Toyota, Volkswagen, Stellantis, Ford, Renault, Subaru, Nissan, Honda and Mazda. Asian chipmakers are rushing to boost production but say the supply gap will take many months to plug. German chipmaker Infineon said the shortage would get worse in the near term. The chip shortage is expected to cut global output in the first quarter by more than 670,000 vehicles and last into the third quarter, IHS Markit said. AutoForecast Solutions estimated total lost production this year could reach 1 million vehicles. Honda and Nissan said on Tuesday they would sell 250,000 fewer cars in total this financial year due.

Diesel-powered 2020 Chevrolet Silverado, GMC Sierra get big price cuts

General Motors is reducing the price difference between its diesel-powered light-duty pickups and their gasoline-burning counterparts, according to a recent report. As of September 3, 2020, the Chevrolet Silverado 1500 and the GMC Sierra 1500 benefit from a $1,500 price cut when they're ordered with a turbodiesel under the hood. Enthusiast website GM Authority first reported the news after looking at internal documents sent to dealers across the nation. It wrote the discount applies to in-stock and in-transit units of the Silverado and the Sierra (pictured), and it added dealers will begin receiving amended window stickers on September 8. And, it's not just a quick, easy way for General Motors stores to clear out 2020 inventory. Incoming 2021 models will benefit from it, too. Chevrolet's cheapest diesel-slurping 2020 Silverado, a double-cab LT with two-wheel drive, now starts at $44,000 once a mandatory $1,595 destination charge enters the equation. For context, the same configuration costs $38,795 including destination when it's ordered with the 2.7-liter turbocharged four-cylinder, which is the smallest and cheapest engine on the roster. Selecting the more efficient engine option costs buyers $5,205. At the other end of the spectrum, the crew-cab High Country with a standard cargo box and four-wheel drive is now priced at $59,690. Walk a block to the GMC store, and you'll need to spend between $44,470 (double-cab SLE with two-wheel drive) and $61,685 (crew-cab Denali with a regular cargo box and four-wheel drive) for a diesel-powered Sierra. It doesn't sound like either company is making major mechanical changes to the trucks for 2021. Both are powered by a 3.0-liter straight-six Duramax engine, which makes 277 horsepower and 460 pound-feet of torque. Rear-wheel drive and a 10-speed automatic transmission come standard, and four-wheel drive is offered at an extra cost. In its most efficient configuration, the Silverado returns 23 mpg in the city, 33 mpg on the highway, and 27 mpg in a mixed cycle, impressive numbers for a body-on-frmae pickup that's as heavy as it is capable. Ram's diesel-powered 1500 posts EPA estimates of 22, 32, and 26, respectively. Ford pledged the recently-unveiled 14th-generation F-150 will offer a turbodiesel engine, too, but its fuel economy figures are not available yet.

U.S. new-vehicle sales in 2018 rise slightly to 17.27 million [UPDATE]

DETROIT — Sales of new vehicles in the U.S. rose slightly in 2018, defying predictions and highlighting a strong economy. Automakers reported an increase of 0.3 percent over a year ago to 17.27 million vehicles. The increase came despite rising interest rates, a volatile stock market, and rising car and truck prices that pushed some buyers out of the new-vehicle market. Industry analysts and automakers said strong economic fundamentals pushed up sales and should keep them near historic highs in 2019. "Economic conditions in the U.S. are favorable and should continue to be supportive of vehicle sales at or around their current run rate," Ford Chief Economist Emily Kolinski Morris said after the company and other automakers announced their sales numbers Thursday. That auto sales remain near the 2016 record of 17.55 million is a testimonial to the strength of the economy, said Mark Zandi, chief economist at Moody's Analytics. The job market, he said, has created new employment, and wage growth has accelerated. "That's fundamental to selling anything," he said. "If there are lots of jobs and people are getting bigger paychecks, they will buy more." The unemployment rate is 3.7 percent, a 49-year low. The economy is thought to have grown close to 3 percent last year, its best performance in more than a decade. Consumers, the main driver of the economy, are spending freely. The Federal Reserve raised its key interest rate four times in 2018 but is only expected to raise it twice this year. Auto sales also were helped by low gasoline prices and rising home values, Zandi said. It all means that people are likely to keep buying new vehicles this year even as they grow more expensive. The Edmunds.com auto-pricing site estimates that the average new vehicle price hit a record $35,957 in December, about 2 percent higher than the previous year. It will be harder for automakers to keep the sales pace above 17 million because they have been enticing buyers for several years now with low-interest financing and other incentives, Zandi said. He predicts more deals in the coming year as job growth slows and credit tightens for higher-risk buyers. Edmunds, which provides content, including automotive tips and reviews, for distribution by The Associated Press, predicts that sales will drop this year to 16.9 million.