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GM may kill 6 car models as it works with UAW to tackle sales slump

The president of the United Auto Workers union said on Thursday the union is talking with General Motors about the potential threat to plants and jobs from slumping U.S. car sales. GM's response will be more trucks and SUVs, and sources say at least six slow-selling car models may be killed off. "We are talking to (GM) right now about the products that they currently have" at underused car plants such as Hamtramck in Michigan and Lordstown in Ohio, and whether they might be replaced with newer, more popular vehicles such as crossovers, Dennis Williams told reporters. "We are tracking it (and) we are addressing it," Williams added. GM has cut shifts at several U.S. plants this year as inventories of unsold cars have ballooned. Industry analysts said more jobs could be at risk as the automaker wrestles with permanently shrinking production of small and midsized sedans. GM is reviewing whether to cancel at least six passenger cars in the U.S. market after 2020, including the Chevrolet Volt hybrid, which could be replaced in 2022 with a new gasoline-electric crossover model, Reuters has learned from people familiar with the plans. Other GM cars at risk include the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala and Chevrolet Sonic, sources said. Some analysts have singled out GM's Hamtramck plant in Detroit as one of the most vulnerable because of plummeting car sales. The plant, which opened in 1985, builds four slow-selling models: Buick LaCrosse, Chevrolet Impala, Cadillac CT6 and Chevrolet Volt. In the first half, it built fewer than 35,000 cars, down 32 percent from the same period in 2016, according to suppliers familiar with GM's U.S. production schedule. The typical GM assembly plant builds 200,000-300,000 vehicles a year.COMING ATTRACTIONS: TRUCKS AND SUVS GM must "create some innovative new products" to replace slow-selling sedans "or start closing plants," said Sam Fiorani, vice president of AutoForecast Solutions. The auto maker already has begun to shift future production plans from cars to trucks, according to Morgan Stanley auto analyst John Murphy. He estimates that fewer than 10 percent of the new vehicle models that GM will introduce over the next four years will be passenger cars, with the rest divided among trucks, SUVs and crossovers. GM plans to add production of the new Cadillac XT4 crossover next year to its Malibu sedan plant in Fairfax, Kansas.

2020 Buick Encore GX is a really attractive middle child

The 2020 Buick Encore GX is officially a thing in North America. The compact crossover slips into the space between the slightly smaller Encore and the larger Envision, adding extra room behind the rear seats to pack in a lot more than the Encore, and only a little less than in Envision. Beyond the additional room, every trim of the Encore GX comes with safety tech that — for the moment, at least — can only be had as an optional extra on the standard Encore, if it's available at all on the smaller model. The six included features are automatic emergency braking, following distance indicator, forward collision alert, front pedestrian braking, IntelliBeam headlamps with automatically-adjusting high/low beams, and lane-keeping assist with lane departure warning. IntelliBeam, for instance, isn't available on the Encore, and doesn't come standard on the Envision until maxing out at the AWD Premium II trim. What's more, the new bigger Encore brother puts a list of substantial safety features on the options sheet, such as Automatic Parking Assist with Braking, a heads-up display, camera-based adaptive cruise control, high-definition Surround Vision camera system, rear park assist, rear cross traffic alert, and a hands-free power liftgate with logo projection. Convenience touches in the cabin are found in wireless charging, Bluetooth pairing for two phones simultaneously, and Android Auto, Apple CarPlay, and Sirius XM with 360L compatibility. The 360L version of Sirius XM combines satellite services with streaming to provide more channels and access to live and on-demand shows. Buyers can luxe it up inside with optional perks like leather-appointed seats, a heated steering wheel, and an ionizing air filter. Buick says the Encore GX swallows 25.3 cubic feet of goods behind the second row. According to the dimension stats on the Buick site, that's 6.5 cubic feet more than the load space in an Encore and a measly 1.6 cubic feet less than the available volume in an Envision. The carmaker wants buyers to get the most flexibility out of the Encore GX area as well, serving up an adjustable load floor in every trim that can be raised to lie level with the folded rear seats and provide extra under-floor storage.

GM might lose 90-year U.S. sales crown over chip shortage

Automotive News editor Nick Bunkley tweeted on October 1 that according to AutoNews data, General Motors "has been the largest seller of vehicles in the U.S. every year since passing Ford in 1931." With automakers having turned in light car and truck sales data for the first three quarters of 2021, GM's 90-year-run might not reach 91. According to AN figures, Toyota was 80,401 vehicles ahead when the October workday started. Worse, GM is so far behind its historic pace that it might only sell enough light vehicles in the U.S. to match its numbers from 1958.  Meanwhile, the New York Times put a few more salient numbers to the pain GM and Toyota are enduring alongside the the rest of the industry. GM sold 33% fewer cars in Q3 2021 than it did in Q3 2019 during the dark days of the pandemic, 446,997 units this year as opposed to 665,192 last year. GM's Q3 2020 was only down 13% on Q3 2019. Over at Toyota, the bottom line showed a 1% gain in Q3 2021 compared to 2020, with 566,005 units moved off dealer lots. The finer numbers show two steps forward and one step back, though; Toyota's September sales were down 22% compared to last year.  GM remains optimistic about what's ahead, GM's president of North American operations telling the NYT, "We look forward to a more stable operating environment through the fall." We'd like to see that happen, but we don't know how it happens. The chip shortage said to have been the inciting incident for the current woes isn't over, and not only can no one agree when it will be over, the automakers, chip producers, and U.S. government still can't get on the same page about who needs what and when. Looking away from that for a second shows articles about "No End In Sight" for supply chain disruptions in early September, before China had to start working through power supply constraints, global supply chain workers started warning of a "system collapse," and roughly 500,000 containers sat waiting to be unloaded at Southern California ports — a record number seemingly broken every week. And back to chips, we're told just a few days ago the chip shortage is "worse than we thought."   For now, the NYT wrote that GM dealer inventory is down 40% from June to roughly 129,000 vehicles, and down 84% from the days when dealers would cumulatively keep about 800,000 light vehicles in stock. However, GM just announced it would have almost all of its U.S. facilities back online next week, although some would run at partial capacity.