2012 Cadillac Escalade Esv Premium on 2040-cars

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GM to cut production at 5 plants in North America, kill several models

DETROIT/WASHINGTON — General Motors Co said on Monday it will cut production of slow-selling models and slash its North American workforce in the face of a stagnant market for traditional gas-powered sedans, shifting more investment to electric and autonomous vehicles. The announcement is the biggest restructuring in North America for the U.S. No. 1 carmaker since its bankruptcy a decade ago. GM said it will take pre-tax charges of $3 billion to $3.8 billion to pay for the cutbacks, but expects the actions to improve annual free cash flow by $6 billion by the end of 2020. GM plans to halt production next year at three assembly plants: Lordstown, Ohio, Hamtramck, Michigan, and Oshawa, Ontario. The company also plans to stop building several models now assembled at those plants, including the Chevrolet Cruze, the Cadillac CT6 and the Buick LaCrosse, the sources said. Sources said the Chevrolet Volt, Impala and Cadillac XTS would also be discontinued. Signs of the demise of six passenger-car models have been swirling since July. Plants in Baltimore, Maryland, and Warren, Michigan, that assemble powertrain components have no products assigned to them after 2019 and thus are at risk of closure, the company said. It will also close two factories outside North America, but did not identify those plants. The AP reported that 14,700 jobs would be affected. Some 8,100 of those would be white-collar jobs reduced through buyouts or layoffs. The No. 1 U.S. automaker signaled the latest belt-tightening in late October when it offered buyouts to 50,000 salaried employees in North America. The company also said it will cut executive ranks by 25 per cent to "streamline decision making." Some 6,000 factory workers could lose their jobs or be transferred to other plants. Its shares were last up 6.2 percent at $38.16. Tariff 'headwinds' and cost-cutting GM Chief Executive Officer Mary Barra told reporters on Monday the company can reduce annual capital spending by $1.5 billion and increase investment in electric and autonomous vehicles and connected vehicle technology because it has largely completed investing in new generations of trucks and sport utility vehicles. Some 75 percent of its global sales will come from just five vehicle architectures by early in the 2020s. It plans to reduce annual capital spending to $7 billion by 2020 from an average of $8.5 billion a year during the 2017-2019 period.

GM CEO Barra says 'we are selling every truck we can build'

DETROIT — General Motors Chief Executive Mary Barra said on Monday the automaker is "selling every truck we can build" and expanding North American truck-building capacity, even as U.S. gasoline prices hit record highs. Barra made her comments during the automaker's annual shareholder meeting. GM is pursuing a two-track strategy: Investing heavily in electric vehicles for North America, China and other markets, and funding those investments by trying to maximize profits from its North American combustion pickup truck and large SUV lineups. Barra said GM is planning higher-priced versions of its Silverado large pickup and its large SUV models. GM and its Detroit rivals Ford Motor Co and Stellantis NV rely heavily on sales of large pickup trucks and SUVs for global profits. High U.S. gasoline prices in the past have undermined consumer demand for relatively inefficient models. Nominal pump prices hit an average of above $5 a gallon for the first time ever last week, the federal government said Friday. GM is ramping up production of EVs. Barra said the Cadillac Lyriq electric sport utility is sold out through 2023. In response to shareholder questions, Barra said the "clear priority" for using cash generated by its operations is to "accelerate our EV plans." She did not rule out share buybacks or other approaches to returning cash to shareholders. GM still expects to increase production this year by 25-30%, despite continuing pressure on semiconductor supplies globally. Barra said GM is working to redesign vehicles to reduce the number of processors required by 95%. Barra serves as GM's board chair and CEO. GM shareholders overwhelmingly rejected a proposal to separate those roles.

Junkyard Gem: 1987 Cadillac Cimarron

The General's Cadillac Division hit its all-time sales record during the 1973 model year, with 304,839 cars sold. Then the OPEC oil embargo in the fall of that year caused oil prices to triple, while simultaneously accelerating several negative trends in the American economy. In the aftermath, sales of imported luxury cars surged, the President resigned, the communists conquered South Vietnam, and Cadillac introduced a compact car based on the proletariat Chevrolet Nova. Sales of those Sevilles — which cost better than triple the price of their Nova siblings — proved strong, and so it seemed to make sense to create a Cadillac-ized version of the Nova's replacement: the front-wheel-drive Chevrolet Cavalier, which debuted for the 1982 model year. Thus was the Cadillac Cimarron born, and that's what we've got for today's Junkyard Gem. The Cimarron stayed in production for the 1982 through 1988 model years, but sales were strongest for the first few years and so the 1982-83 cars make up the bulk of my Cimarron junkyard finds. This very clean '87 in a Denver-area yard is a rare late-production car. Although the Cimarron was by far the swankiest GM J-Body ever made, its Cavalier ancestry was unmistakable. While the Nova-based Seville caused some grumbling over the cheapening of the Cadillac brand, the Cimarron inspired widespread anger and loathing among those who love cars. Even with a leather interior and nice audio system, the Cimarron still caused pain to its owners who saw cheapo Cavaliers (and Pontiac J2000s and Olds Firenzas) looking nearly identical at a glance yet costing far less. In 1987, the list price on a new Cimarron started at $15,032 (about $35,550 in 2021 dollars). The cheapest Cavalier listed at $7,255 that year, though the loaded Cavalier RS sedan with V6 engine started at $9,159. For 1982 through 1986, the base powertrain in the Cimarron consisted of a 1.8-liter or 2.0-liter four-cylinder — yes, the same double-digit-horsepower engines that went into Cavaliers — paired with a four- or five-speed manual transmission. The 2.8-liter V6, rated at 125 horses, was an option in those cars and became standard equipment in the 1987 and 1988 Cimarrons.