1985 Cadillac Seville on 2040-cars

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GM winding down Chevrolet brand in Europe

If you've taken even a cursory look at GM's European strategy and wondered how it can target the market there with both Chevrolet and Opel/Vauxhall, you're not alone. In fact General Motors itself has found it difficult to justify the two-pronged approach. That's why it's essentially pulling Chevy from the European marketplace.
Instead of trying to ply European buyers with what are mostly former Daewoo products rebadged as Chevys, GM will now let Opel (or Vauxhall in the UK) represent its mass-market aspirations. Chevrolet will keep its presence in Russia and other former Soviet markets, and will continue selling certain niche products in Eastern and Western Europe. The Corvette, for example, has long been sold in Europe through Cadillac dealerships, which for its part is currently "finalizing plans for expanding in the European market".
While the shift in strategy is expected to help GM get a stronger foothold in the European market in the long run, in the short term the restructuring will cost it dearly: between $700 million and $1 billion, according to its own estimates, split between the last quarter of this year and the first half of the next. Jump into the full press release below for more.

GM invests $175 million to replace 3 Cadillac sedans with 2

We've already had confirmation that Cadillac is sunsetting the ATS compact sedan and strong hints that Caddy would discontinue the full-size XTS (pictured above) and midsize CTS, too. Now all three are confirmed, with GM saying it's investing $175 million to build two replacement sedans. GM has already begun installing new tooling at its Lansing Grand River assembly plant in Michigan. That will go toward building two new sedans, which reports suggest are likely to be called the Cadillac CT5 and CT4, or possibly the CT3. It's part of Cadillac's plan to introduce a new vehicle every six months by the end of 2021. A spokesman told the Associated Press that the new cars will debut within that time frame and that the changes won't affect staffing levels at the plant, which employs 2,000 people. Of the three, the XTS is expected to go away entirely, while the CT5 would replace the CTS, straddling the line between a compact and midsize four-door. The CT4 or CT3 would take the spot of the ATS and likely be smaller. That would leave the CT6 as the brand's largest sedan and leave Cadillac with three sedans starting with the 2019 model year. Meanwhile, Cadillac has only one model, its top-selling XT5, representing the all-important and red-hot luxury crossover segment. It's prepping a midsize XT4 crossover for sale later this year as a 2019 model. Cadillac's global sales rose 15.5 percent in 2017, thanks largely to growth in China, but sales in the U.S. fell 8 percent for the year to 156,440 vehicles. Sales of the ATS fell 39 percent, dropped 35 percent for the CTS and 27 for the XTS last year. Related Video:

GM raises 2023 guidance on strong sales, higher profits

General Motors beat first-quarter profit estimates and raised its full-year earnings and cash-flow guidance after vehicle demand at the start of the year surpassed expectations. Its shares rose in premarket trading. GM made $2.21 a share in adjusted profit in the first quarter, compared to a consensus forecast of $1.72 a share. Revenue rose 11% to $39.99 billion, it said Tuesday, which was more than the $39.24 billion analysts expected. The stronger results stem from rising sales in the US, even in the face of higher interest rates and inflation. GM executives said demand was strong enough to revise 2023 guidance upward, boosting profit estimates for the year by $500 million to between $11 billion and $13 billion. “We did it with strong production and inventory discipline and consistent pricing,” GM Chief Financial Officer Paul Jacobson said on a call with journalists. “All in all, weÂ’re feeling confident about 2023.” The Detroit automaker raised per-share full-year guidance to between $6.35 and $7.35, up from $6 to $7 a share, and said free cash flow would also increase by $500 million to a range of $5.5 billion to $7.5 billion.  GMÂ’s shares pared a gain of as much as 4.4% before the start of regular trading Tuesday, rising 3.5% to $35.50 as of 6:55 a.m. in New York. The stock was up 1.9% for the year as of the close on Monday.  North American Strength The automakerÂ’s sales were particularly strong in North America, where first-quarter earnings rose before interest and taxes rose to $3.6 billion. Vehicle sales rose 18% to 707,000 in the region. Jacobson said the company originally expected to sell 15 million vehicles in the US this year, slightly less than the 15.5 million annualized rate automakers foresaw in the first quarter. North American demand was enough to offset a weak performance in China, GMÂ’s second-largest market. The automaker continues to struggle in the country, where its vehicle sales fell 25% to 462,000 vehicles in the quarter. Profits from its joint ventures in the market slumped 65% to $83 million.  The market has struggled overall in the wake of Covid-19 restrictions and foreign automakers have had to overcome a growing preference for Chinese brands by competing on price, squeezing profit margins. The situation in China probably wonÂ’t significantly improve until the second half of the year, according to Jacobson. GM remains on target to sell 150,000 electric vehicles this year, the CFO said.