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GM and Ford quarterly sales continue to slump in China

BEIJING — General Motors and Ford announced their quarterly sales in China fell, albeit at a slower pace sequentially, as the U.S. automakers were hit by a slowing economy amid the Sino-U.S. trade war. GM's vehicle sales in China for the quarter ended June 30 dropped 12.2%, while Ford's sales slumped by 21.7%. While GM also suffered from heightened competition in its key mid-priced SUV segment, Ford was hurt by the limited new models for customers to choose from. For the first quarter of this year, Ford's sales in China tumbled 35.8 percent while GM's skid 17.5 percent. Still, the numbers from GM, the second biggest international automaker in China by sales, and Ford portend more uncertainty for the industry which is trying to rebound from a downward spiral that led to its first annual sales decline last year in more than two decades. GM delivered 1.57 million vehicles in China in the January-June period this year, while Ford delivered 290,321 vehicles. China's factory activity shrank more than expected in June, highlighting the need for more economic stimulus amid higher U.S. tariffs and weaker domestic demand. Annual car sales in China fell last year for the first time since the 1990s, and they are expected to fall this year too. Sales tumbled 16.4% in May from the same month a year prior, the China Association of Automobile Manufacturers (CAAM) said. That marked the 11th consecutive month of decline and followed falls of 14.6% in April and 5.2% in March. U.S. car companies' share of total China passenger vehicles sales fell to 9.6% in the first five months of this year from 10.9% in the year-ago period, according to CAAM. Over the same period, German car makers' share has risen to 23.3% from 20.9% and Japanese auto makers' to 21.3% from 17.3%. CAAM is set to announce June sales next week, which industry analysts forecast will be negative.   New models In China, GM has a joint venture with SAIC Motor Corp, in which the Buick, Chevrolet and Cadillac are made. It also has another venture, with SAIC and GuangxiAutomobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of GM's affordable brand Baojun dropped 31.8% for the latest quarter. But luxury brand Cadillac's sales jumped 36.6%. GM sold 3.64 million units in China last year, down from 4.04 units in 2017. Ford makes cars in China through its joint venture with Chongqing Changan Automobile Co and Jiangling Motors Corp (JMC).

Buick Avista concept is 'buildable', but not a priority

Buick could build the striking Avista concept that debuted at the Detroit Auto Show, though it's not a top priority, the brand's top executive said Tuesday in New York. "The reaction's been so great, we'll try to run the numbers and see if there's a business case," said Duncan Aldred, Buick vice president of sales, service, and marketing. Buick will show the Avista in red this week at the New York Auto Show as a followup to its Detroit debut. Buick actually built two prototypes, which are being used to promote the brand's performance potential at auto shows around the world this year. "It's very buildable," Aldred told reporters after the reveal of the reveal of the 2017 Encore small crossover before the New York Auto Show. "Ultimately, it comes down to priorities." He added, "We'd love to do it. We could do it, but [there's] lots of things we'd love to do... Nothing to confirm or deny." The Avista concept suggests a sports car with a twin-turbo V6 with 400 horsepower put to the rear wheels. The two-door followed another impressive Buick concept, the Avenir, which was four-door styling exercise from the 2015 Detroit show. Though the Avista remains on the minds of enthusiasts – helped in part by Buick – the priorities for the brand are crossovers. The Avista offers style, but the freshened Encore is the substance for Buick in New York, which along with the Envision, launches this year into the red-hot utility segment. The new Cascada convertible and redesigned LaCrosse also are joining Buick's lineup this year. While the Avista is doable, the brand clearly has other priorities ahead of it. Related Video:

GM recalls over 230,000 more Trailblazer-family SUVs over door electronics

Back in August, the National Highway Traffic Safety Administration announced a recall on the General Motors GMT360 SUVs (Buick Rainier, Chevrolet Trailblazer, GMC Envoy, Isuzu Ascender and Saab 9-7X) ranging from the 2005 to 2007 model years and the 2006 GMT370 SUVs (Chevrolet Trailblazer EXT and GMC Envoy XL) due to potential fires associated with the driver's door module. Initially limited to 250,000 units sold or registered in 20 Snow Belt states (and the District of Columbia), the recall has now been expanded to include an additional 193,000 of these SUVs in the US and, according to The Detroit News, 40,000 more sold outside the US, including Canada and Mexico.
Like the original recall, the issue is still a faulty driver's door module that can short out, which could lead to a fire. The Detroit News is reporting that, out of the 443,000 units being recalled, GM says that there were 58 fires that caused 11 minor injuries, and the expanded recall accounted for six fires and one injury. Despite the lower number of fires, the recall notice recommends that owners park their vehicles until the recall repairs has been performed.
On recalled units with functional modules, the repair consists of a protective coating being applied to the module, while vehicles with modules that are not working properly will have the driver's door module replaced. The official recall notice is posted below, and it includes contact information for customers of all five brands.