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Cadillac and Buick boost GM's return to growth in China

BEIJING — General Motors on Monday said continued market recovery from the COVID-19 crisis helped its China vehicle sales grow 12% on year in July-September, marking the Detroit automaker's first Chinese quarterly sales growth in two years. The second-biggest foreign automaker in China by units — after Germany's Volkswagen AG — said on Monday it had delivered 771,400 vehicles in China in the third quarter. That followed a 5% fall in the second quarter, when parts of China were still emerging from virus-busting lockdown measures. GM has a Shanghai-based joint venture with SAIC making Buick, Chevrolet and Cadillac vehicles. It has another venture, SGMW, with SAIC and Guangxi Automobile Group, producing no-frills minivans and which has started manufacturing higher-end cars. Sales rose 26% for cars under its mass-market Buick brand in the third quarter versus the same period a year earlier, while those of premium brand Cadillac jumped 28%, GM said in a statement. Sales of its mass-market Chevrolet marque fell 20%. Sales of no-frills brand Wuling grew 26%, whereas those of mass-market Baojun vehicles tumbled 19%. "GM's compact models returned to four-cylinder engines and that helped sales growth," said LMC Automotive senior analyst Alan Kang, referring to an attempt to market cleaner but noisier three-cylinder versions. "Cadillac also has a more complete lineup this year." China's biggest automakers' association expects overall car sales to grow by double digits in July-September versus a year earlier. Makers such as Toyota, Honda and Geely saw sales jump in the just-finished quarter. GM has seen its China sales suffer in a crowded market and slowing economy. To revive its fortunes, it plans to have electric vehicles (EVs) make up over 40% of new models in the next five years in China, where the government promotes greener cars. The automaker's Wuling Hong Guang MINI EV, a micro two-door EV with a starting price of 28,800 yuan ($4,200), was China's biggest-selling EV in August. GM's sales fell 15% in 2019 from a year earlier to 3.09 million vehicles. The automaker delivered 3.65 million vehicles in 2018 and 4.04 million in 2017. Related Video:

About 150 Cadillac dealers would rather leave the brand than sell EVs

Dealerships might hamper GM’s plans to electrify its cars. Wall Street Journal tipsters claim that roughly 150 GM dealerships in the United States have decided to drop the Cadillac brand and accept a buyout (ranging from $300,000 to over $1 million) rather than spend about $200,000 to upgrade the dealerships with charging stations, repair hardware and other equipment needed to sell EVs. Many of these dealerships only sell a few Cadillacs per month versus more for Buick, Chevrolet and GMC, but itÂ’s still a significant blow when GM has 880 Cadillac dealers in the country. Cadillac brand leader Rory Harvey confirmed to the WSJ that GM was offering buyouts, but didnÂ’t say how many dealers took them or how much they were worth. The exodus underscores the challenges for conventional car brands as well as the potential advantages for alternatives like Tesla. As brands like GM are heavily dependent on dealerships, they have to please owners to have a chance of strong sales — and thatÂ’s difficult when theyÂ’re not certain about demand, even without the pandemic. Tesla and other direct-to-customer EV makers arenÂ’t bound by physical stores and already have the infrastructure in place for service centers. Dealers might not have much choice in the future. California is banning sales of new gas-powered cars by 2035, and that will likely force automakers to electrify no matter how dealership owners feel. The buyouts now arenÂ’t necessarily temporary, but we wouldnÂ’t rule out some shops having a change of heart as the effective EV deadline approaches. Related video:

GM doubles miles open to its Super Cruise technology

DETROIT — General Motors said on Wednesday owners of certain vehicles equipped with its Super Cruise assisted driving system will now be able to use it on 400,000 miles (643,740 km) of North American roads, doubling the current operating area as Tesla and other automakers race to deploy hands-free cruising technology. GM's Super Cruise system, like Tesla's Autopilot system, is a driver assistance system, and does not enable true autonomous driving. Spurred by Tesla's aggressive deployment of Autopilot, and Tesla Chief Executive Elon Musk's promises of a more advanced "Full Self Driving" system, GM, Ford, Volkswagen and Mercedes-Benz are racing to deploy competing partial automation technology in major markets. At the same time, safety regulators are showing concern that drivers do not understand that Autopilot and similar systems are not designed to take over driving in every circumstance. The GM system's sensors and software allow a motorist to cruise with hands off the wheel on highways that have been mapped in detail. But the driver is expected to stay alert and ready to take over the car. GM uses technology to monitor the driver, and Super Cruise will sound alarms or slow the car to a stop if it detects that a driver is not responding. Starting later this year, GM plans to enable vehicles equipped with Super Cruise and the company's latest vehicle electronic system to operate hands-free on major, undivided highways in the United States and Canada, as well as additional miles of divided, interstate highways. Currently, Super Cruise operates only on interstate, divided highways. The expansion, enabled by wider digital mapping, will allow owners of properly equipped GM vehicles to cruise hands-free on stretches of Route 66 and the Pacific Coast Highway in the U.S. West or the Trans-Canada highway in Western Canada, GM said. Many of the new roads GM has mapped are in rural, heartland states where GM pickup trucks are popular. GM plans to offer Super Cruise as an option on its Chevrolet Silverado and GMC Sierra large pickups later this year. GM has said previously it intends to offer Super Cruise as an option on 22 models by the end of 2023. Depending on the model, Super Cruise costs $2,200 to $2,500 to add as an option. (Reporting by Joe White in Detroit; Editing by Matthew Lewis) Related video: Cadillac Chevrolet GM GMC Technology Super Cruise