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GM says EVs are the future — but trucks are going to take it there

In the PowerPoint deck for the General Motors Capital Markets Day presentation, one of the more disturbing things comes early on, during GM President Mark Reuss' initial remarks, in an area where he is discussing the company's overall strength in trucks. The point being made is that GM has a truck for all and sundry. And there it is, a phrase on a slide that should send chills up the spines of those who still pine for the old Bob Seger "Like a Rock" Silverado ads: "Little bit country. Little bit rock 'n' roll." That's right. Donny and Marie. Somehow the Denis Leary snark in the F-150 ads is all the more appealing. The Capital Markets Day presentation was chock full of observations about electrification and automation (Reuss and CEO Mary Barra both noted that the corporation's vision is one of "Zero Crashes. Zero Emissions. Zero Congestion." Dan Ammann talked about the progress being made at Cruise Automation; Reuss rolled out the plan for an array of electrified vehicles, with a luxury EV and a compact SUV being the "Centroid Entries" for the modular bases of many others). But it is worth noting that there is no getting away from the power of pickups in the U.S. market, as that was the central topic in Chief Financial Officer Dhivya Suryadevara's comments, with "Truck Franchise" being flanked by "Key Financial Priorities" and "Financial Outlook." Clearly, to gloss the old phrase, the truck segment is where the money is. Suryadevra enumerated how the truck segment is significantly different than other types of light vehicles. Among her points: GM, Ford and FCA have more than 90% of market share. The truck parc has been growing and aging over the past 10 years. Customers are fiercely loyal to the segment—as in 70% of truck buyers are truck buyers. A good number of the vehicles are for commercial use (40 percent). Trucks are "less prone to. . .mobility disruption." Trucks offer high margins. Translaton: The segment is one that they're solidly positioned in. There are lots of old trucks on the road that will need to be replaced by new ones. Perhaps buyers may switch from a Sierra to a Canyon, but it will be a truck. If your livelihood depends on that type of vehicle, even if gas prices go up or the economy begins to go south, you're going to stick with it. Most of the country isn't San Francisco, so trucks will continue to be essential. And, well, they're profitable in the extreme.

GM struggles to sell small cars, plans to lay off 2,084 employees at two plants

Due to low demand for some of its vehicles, General Motors plans to cut 2,084 jobs at its assembly plants in Lordstown, OH and Lansing, MI. At the same time, the automaker also announced plans to invest approximately $900 million in three of its facilities – the Toledo Transmission Operations in Ohio, Bedford Casting Operations in Indiana, and Lansing Grand River in Michigan - for future products. GM will discontinue the third shift at both the Lansing Grand River plant and the Lordstown, OH plant. The Cadillac ATS, Cadillac CTS, and Chevrolet Camaro are made at the automaker's plant in Michigan, which currently has 2,700 employees. The move to eliminate the third shift affects 810 hourly workers, as well as 29 salaried employees, starting on January 16th. The plant in Lordstown, OH currently has 4,500 employees and makes the Chevrolet Cruze sedan. The plan to discontinue the third shift will affect 43 salaried workers and 1,202 hourly employees and will start on January 23rd. As Fortune points out, sales of the Cruze are down 20 percent through October, while sales of the Cadillac ATS and CTS were down 17 percent through the same period of time. In addition to cutting the third shift at both assembly plants, the automaker plans to invest a total of $900 million between three of its facilities for unnamed future products. GM's Toledo Transmission Operations will receive $667.6 million, the Lansing Grand River Assembly plant will receive $211 million, and the automaker's Bedford Casting Operations will get $37 million. Last year, GM cut roughly 500 jobs from its Orion Township factory due to slow sales of the Chevrolet Sonic and Buick Verano, with surging crossover and SUV sales as the most likely culprit. With GM posting much healthier sales figures for the Chevrolet Equinox and Cadillac XT5 compared to the ATS, CTS, and Cruze, it looks like compact SUVs are to blame for this year's layoffs as well. Related Video: News Source: Fortune, General MotorsImage Credit: REUTERS / Rebecca Cook Hirings/Firings/Layoffs Plants/Manufacturing Cadillac Chevrolet GM Coupe Sedan Lordstown Ohio

Cadillac Escalade Diesel Road Test Review | Winning us over

"Nope, I don't like it," I declared to my large son sitting in the 2021 Cadillac Escalade 600D's second-row captain's chairs. “Why?” he asked, staring in awe at the opulence around him and with his very own touchscreen staring back. “ItÂ’s too big. This thingÂ’s gonna suck to park,” I replied. And it did. Even with multiple camera angles, including a 360-degree view, the big Cadillac was a pain to navigate in parking lots. But, slowly, the big lug — the car, not my son — began to grow on me. Sometimes I had to remind myself that this was the diesel Escalade. I couldnÂ’t really hear the clunking of the motor up front or the exhaust running out the rear. I double-checked the tach for the telltale lower redline, and was reassured that I was driving the vehicle I was told would be delivered. Under the hood is GMÂ’s Duramax 3.0-liter inline six-cylinder turbodiesel engine providing a somewhat meager 277 horsepower – considerably less than the standard 6.2-liter V8Â’s 420 hp. But the Duramax boasts a robust 460 pound-feet of torque, the same torque figure as the V8. The advantage here is that peak torque is accessible from a low 1,500 rpm, while the V8Â’s full twist doesnÂ’t arrive until much higher in the rev range, at 4,100 rpm. The result is an SUV that feels eager to jump off the line and scoot about the neighborhood (if “scoot” is a word that can be applied to such a behemoth). That initial torque hit is almost instantaneous, but the dieselÂ’s staying power does have its limits. ItÂ’s on expressway on-ramps that the Duramax finally seems to labor under this EscaladeÂ’s 6,015-pound curb weight. The numbers on the speedometer just donÂ’t tick away with urgency once you approach highway speeds. That tends to happen with only 277 horsepower. While the sound deadening does a fabulous job of hiding the motor's sound when inside the Escalade, standing outside with the Duramax running leaves no doubt about the diesel mill powering this dressy brute. ItÂ’s not particularly loud or harsh, but the clatter is distinctive when youÂ’d normally expect to hear the humming of a V8 at idle. The 10-speed automatic transmission feels like a good fit for this powertrain. With a redline just over 5,000 rpm, the extra gears minimize time spent at the top of the rev range — a good thing in a vehicle for which low-end torque is king.