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Buick, GMC making OnStar Connected Services standard

The thing about the future is that so long as you're alive, you're going to get there whether you like it or not. Thanks to over-the-air connections essentially being a compulsory part of EV ownership and an increasingly important — and profitable — component of ICE ownership, it's easiest for automakers to install full-featured Internet connections in every vehicle. GM has taken the first step, a report in GM Authority saying that as of June 2, all Buick and GMC models are sold with the Onstar Connected Services plan good for three years. The OnStar site shows the Connected Vehicle tier that comes with a Wi-Fi hotspot costs $24.99 per month, which would be $900 minus a few pennies for three years. At the top end is OnStar Premium that runs about $1,800 for three years. Both include Connected Services features, yet GMA reports that depending on the vehicles, OnStar Connected Services will cost between $905 and $1,675. Only the GMC Hummer EV Edition 1 is excluded for now. GM confirmed the change to GM Authority, saying, "This offering provides our owners with a full suite of OnStar and Connected Services for three years, providing them with more time to enjoy services such as remote key fob, Wi-Fi data and OnStar safety services. By including this plan as standard equipment on the vehicle, it provides more customer value and a more seamless onboarding experience." Three trims of the GMC Sierra 1500 and two trims of the GMC Yukon and Yukon XL come in at the low end, OnStar adding $905 to their MSRPs. Almost every other vehicle gets hit with a $1,500 charge. The GMC Sierra HD Pro is the only model to charge $1,675 for it, which GMA breaks out as a "$1,500 3-year subscription and $175 OnStar & GMC Connected Services Capability." This brings up the question of the price differences; we can't tell if there's a difference in feature content between the price tiers, or why the Sierra HD gets the extra $175 fee. The automaker told GMA the upcharge will be folded into the MSRP. On the configurator for the Sierra 1500 SLE, for instance, the dialog box for three years of OnStar at $1,500 is automatically checked and can't be unchecked. The Buick configurators we tried don't mention OnStar.

GM won't really kill off the Chevy Volt and Cadillac CT6, will it?

General Motors is apparently considering killing off six slow-selling models by 2020, according to Reuters. But is that really likely? The news is mentioned in a story where UAW president Dennis Williams notes that slumping US car sales could threaten jobs at low-volume factories. Still, we're skeptical that GM is really serious about killing those cars. Reuters specifically calls out the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala, Chevrolet Sonic, and the Chevrolet Volt. Most of these have been redesigned or refreshed within the past few model years. Four - the LaCrosse, Impala, CT6, and Volt - are built in the Hamtramck factory in Detroit. That plant has made only 35,000 cars this year - down 32 percent from 2016. A typical GM plant builds 200,000-300,000 vehicles a year. Of all the cars Williams listed, killing the XTS, Impala, and Sonic make the most sense. They're older and don't sell particularly well. On the other hand, axing the other three seems like an odd move. It would leave Buick and Cadillac without flagship sedans, at least until the rumored Cadillac CT8 arrives. The CT6 was a big investment for GM and backing out after just a few years would be a huge loss. It also uses GM's latest and best materials and technology, making us even more skeptical. The Volt is a hugely important car for Chevrolet, and supplementing it with a crossover makes more sense than replacing it with one. Offering one model with a range of powertrain variants like the Hyundai Ioniq and Toyota Prius might be another route GM could take. All six of these vehicles are sedans, Yes, crossover sales are booming, but there's still a huge market for cars. Backing away from these would be essentially giving up sales to competitors from around the globe. The UAW might simply be publicly pushing GM to move crossover production to Hamtramck to avoid closing the plant and laying off workers. Sales of passenger cars are down across both GM and the industry. Consolidating production in other plants and closing Hamtramck rather than having a single facility focus on sedans might make more sense from a business perspective. GM is also trying to reduce its unsold inventory, meaning current production may be slowed or halted while current cars move into customer hands. There's a lot of politics that goes into building a car. GM wants to do what makes the most sense from a business perspective, while the UAW doesn't workers to lose their jobs when a factory closes.

Nearly half of Buick dealers choose buyout over investing to sell EVs

In 2022, General Motors gave Buick dealers across the nation a simple choice: invest a significant amount of money to prepare for EVs or opt for a buyout. Over a year later, the brand has reportedly lost nearly half of its dealerships as it prepares to roll out its first electric cars. Trade journal Automotive News reported that the number of Buick dealers in the United States dropped by about 47% during 2023. At the beginning of the year, the network included 1,958 stores; fast-forward to December and that figure stands at approximately 1,000. More dealers could throw in the towel in the coming weeks, as the publication adds that the buyout program remains open and will continue. Dollar figures haven't been released, so we don't know precisely how much money a dealer who opts out can claim from General Motors or how much money a dealer needs to spend to stick with the brand. However, the latter figure falls somewhere between $300,000 and $400,000, Automotive News learned. Dealers notably need to invest in equipment (such as charging stations) and training. Buick doesn't seem fazed by the exodus. "I'm really pleased with where we are. The network, where we are now, is a good size. It's with dealers who are focused on the business, who've shown that they can recover the volume that the dealers who transitioned away were doing," company boss Duncan Aldred said. According to Automotive News, the dealers who chose to stop selling Buick models accounted for about 20% of the brand's sales in the United States. Buick told the publication that around 89% of the American population still lives within 25 miles of one of its dealerships. General Motors extended the same offer to Cadillac dealerships in 2020, and about 150 stores allegedly chose to leave. For context, the dealer network consisted of 880 locations in the United States before executives floated the buyout offer. The dealers who left received between $300,000 to $500,000, the report adds, while preparing to sell electric cars would have set them back by around $200,000. Related video: