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Weekly Recap: GM scales back as Russian auto market teeters

General Motors' extensive plans to scale back its Russian operations are the latest sign the automotive market in the former superpower is collapsing – and there are few signs of recovery. GM said Wednesday it will stop selling mainstream Chevrolets and shutter the entire Opel brand in Russia. The moves leave GM with a luxury-focused presence consisting of Cadillac and Chevrolet's Corvette, Camaro and Tahoe. The cutbacks will be completed by the end of the year. The automaker will also idle its factory in St. Petersburg and end a contract-assembly agreement with Russian manufacturer GAZ. "We had to take decisive action in Russia to protect our business," Opel Group CEO Karl-Thomas Neumann said in a statement. "We confirm our outlook to return the European business to profitability in 2016 and stick to our long-term goals." GM is the latest automaker to scale back in Russia as the economic conditions, volatile currency and uncertainty over the conflict in the Ukraine all have sandbagged new car sales. Last month, vehicle sales collapsed 38 percent in Russia to 128,298 units, according to the Association of European Business, which records sales. Joerg Schreiber, chairman of the AEB automobile manufacturers committee, didn't even feign optimism in a statement announcing the figures. "The market is entering a very difficult phase now, and February is only the beginning," he said. "Industry sentiment is the next few months will be extremely difficult and the market bottom has yet to be found." The dovetails with industry experts, who predict the Russian auto sector will remain in the doldrums. IHS said earlier this year it expects Russia's sales to slip to just 1.8 million units in 2015, which is a 40-percent drop from 2012. Other News & Notes Chief leads Jeep's Easter Safari stable Jeep is bringing seven attention-getting concepts to Moab for its annual Easter Safari off-roading celebration in Utah, but the Chief is perhaps the standout of the group. It salutes the 1970s Cherokee with a throwback appearance and surfer styling cues. The Chief has a custom modified razor grille made famous by the Wagoneer, and it rolls on 17-inch slotted mag wheels. The surf theme comes in with ocean blue paint, floral cloth and leather seats and a tiki-style shifter handle. Based on the Jeep Wrangler, the Chief has removable sides, a 3.6-liter V6 engine and a six-speed manual gearbox.

Cadillac plans new branding campaign to go with new products

Cadillac's new leader says the GM luxury brand now has "thousands of people" working on its behalf back at its soon-to-be new headquarters in the Detroit suburb of Warren, with a new branding campaign under development and plans to fix longstanding quality issues. Cadillac President Steve Carlisle granted an interview with the Detroit Free Press in which he said he'll unveil a new strategy to redefine the luxury brand, which he's calling a "master brand," in the first quarter of 2019. "Cadillac has its own values — boldness, optimism, innovation, sophistication — that will reflect in the master brand," Carlisle told the outlet. The challenge is "how to bring those to life." He added that Caddy won't be defining itself simply as a viable option to gold-standard Germany luxury cars. "We're targeting customers versus competitors. Cadillac has to have its own persona and not be defined by where other brands are and are not. It has to have its own definition and that's what we're reflecting in our master brand." Carlisle, who was promoted to lead Cadillac in April, put his first stamp on Cadillac last month when the brand announced it will move its headquarters back to Warren, Mich., across the street from GM's massive Tech Center, after more than three years in Manhattan's SoHo neighborhood. He said its Cadillac House showroom, a ground-floor space used to display models and stage events with partners, will remain open "for the time being" and that the brand will use what it learned well outside of its Detroit auto-industry bubble to move the brand forward. He'll have his work cut out for him. Cadillac plans to launch a new or redesigned vehicle every six months for the next three years, and Carlisle said he wants the brand to be GM's technology leader, the first to deploy self-driving and electric-vehicle technology of GM's stable of brands. Yet the brand just ranked second-from-last in Consumer Reports' new reliability survey for 2018. Jon Linkov, deputy auto editor for CR, said the brand suffered for widespread complaints about its Cadillac User Experience infotainment system, with owners reporting frequent crashes, frozen screens and problems with voice control. "Most of (the complaints) really ran through the CUE system being a major culprit for Cadillacs," Linkov said. Through September, Cadillac's year-to-date sales had dipped a half a percentage point from the first nine months of 2017 to 113,240 units.

Cadillac ATS was almost front-wheel drive

"We were going to do a front-wheel drive Cadillac compact off of Delta because it was going to be less expensive," Doug Parks, General Motors' vice president of global product programs, told the Automotive News during the Detroit Auto Show in January of this year. That sentence, referring to early ATS discussions more than five years ago - a period when the automaker, and the industry, was struggling - reveals that Cadillac's highly acclaimed rear-wheel drive compact sedan almost never happened.
Parks revealed that that automaker actually built a 2.0-liter test mule, on GM's Delta platform (shared with the Chevrolet Cruze and Buick Verano) and tested it in Europe. While the prototype was "pretty darn good," according to Parks, the team realized that in order to compete against Mercedes-Benz and BMW it would have to invest in a new rear-wheel drive platform.
The resulting all-new Alpha platform would eventually underpin the Cadillac ATS, and many would argue that its balanced rear-wheel drive chassis is its single most important attribute. Thankfully, the Alpha's goodness won't stop with the ATS. The upcoming 2014 Cadillac CTS and the future Camaro will also share its architecture, meaning the Cimarron will remain a distant memory.