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GM’s Charlie Wilson was right: Stronger regulations can help U.S. automakers

Charlie Wilson had been the president and CEO of General Motors before being nominated to become secretary of defense by Dwight Eisenhower. During his Senate confirmation hearings, he controversially said, "For years I thought what was good for our country was good for General Motors, and vice versa." And he was right. While car companies aren't necessarily the most progressive when it comes to things that might have the slightest possibility of political blowback, General Motors should be credited for doing something absolutely forthright in this regard with its announcement that it wants the federal U.S. government not to squash the California Air Resources Board's emissions requirements but to actually create a 50-state "National Zero Emissions Vehicle" program that, in the words of Mark Reuss, executive vice president and president, Global Product Group and Cadillac, "will drive the scale and infrastructure investments needed to allow the U.S. to lead the way to a zero emission future." Filing comments to the Safer Affordable Fuel-Efficient Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks is one thing. But a graphic the company developed for this announcement — shown above — is something else entirely, something that is absolutely credible, creative and clever. There is a photo of a Chevrolet Bolt EV driving along a highway, which seems to be in Marin County (based on the blurred San Francisco skyline in the background). Text on the photo states: "It's Time for American Leadership in Zero Emissions Vehicles." It seems to say, in effect, "If we want to make America great again, then we're going to do it by leading in technology, not by retreating behind weakened regulations." General Motors understands that the auto market is globally competitive, and if U.S.-based companies are going to be in the game, then they'd better be able to out-innovate the companies based elsewhere, where emissions and economy standards are not being weakened. What's good for our country ... Related Video:

GM will recall more than 3.3 million vehicles in China for suspension defect

BEIJING (Reuters) - General Motors' joint venture in China, Shanghai GM, will recall more than 3.3 million Buick, Chevrolet and Cadillac vehicles stating Oct. 20 because of a defect with the suspension system, China's market regulator said on Saturday. GM Shanghai said in a text message to Reuters that the suspension arm may be deformed under extreme operating conditions, but there are no known casualties related to the issue. The recall includes cars produced between 2013 and 2018, the State Administration for Market Regulation said in a statement. GM will contact those affected and repair the vehicles free of charge, it said. (Reporting by Josephine Mason and Hallie Gu; additional reporting by Yilei Sun; Editing by Shri Navaratnam and Michael Perry)Related Video: Image Credit: Qilai Shen/Bloomberg via Getty Recalls Buick Cadillac Chevrolet Safety

Buick to kill Verano as early as 2017

The Buick Verano's days are allegedly numbered. Citing unnamed sources, Automotive News is reporting that Buick will kill its Delta-platform-based sedan. The company offered the typical "no comment." According to AN, Buick is expecting 70 percent of its sales to come from the Encore, Envision, and Enclave once the Envision goes on sale. And it doesn't take a professor of economics to recognize that when half the vehicles you build account for just 30 percent of the sales, it's time to trim. But the case for killing the Verano is a weird one, because the problem isn't a lack of demand. Struggling sales might be the reason to kill a car, but the Verano is – and has consistently been – Buick's second best-selling sedan. It's beaten the slightly larger, more expensive Regal by at least 12,000 units in each of the last four years. Hell, in 2013, Buick sold 45,000 Veranos to fewer than 19,000 Regals. So why not kill the Regal? Well, the Verano's raison d'etre is irrelevant today. Buick launched its smallest sedan at a time when premium compact four-doors weren't a thing and gas prices were high enough that consumers were still hesitant to tie themselves to a CUV's fuel bill. And while it was roughly the same size as the Chevrolet Cruze that it shared GM's Delta platform with, it had enough unique equipment to stand apart and warrant its price premium. Today, fuel prices are cheap and consumers are flocking to crossovers while Buick is stuck sharing the premium compact pie with much more prestigious names ( Mercedes-Benz and Audi). And because it's sharing showroom space with the super-popular Encore, even the Verano's affordable pricing has become a liability. Today, a lightly equipped Verano is the same price as a base Encore, and they offer broadly similar features (rear-view cameras, a seven-inch touchscreen with Intellilink, Bluetooth, etc.). And if the Encore is too small, there's probably a GMC Terrain sitting in the same showroom, offering more utility and equal equipment to the Verano for a similar price. As one dealer told AN, "For not much more money, customers can get an SUV." Killing the Verano might risk 30,000 to 40,000 sales, but it's a move that proves Buick has tremendous confidence in its CUV lineup – clearly the company thinks the Encore can do the job of luring customers into showrooms. AN's sources claim the Verano will survive through 2017, so we'll be waiting a few years to find out if that faith is misplaced. Related Video: