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GM extends vehicle production cuts into mid-March due to global chip shortage

DETROIT — General Motors said on Tuesday it was extending production cuts at three North American plants until at least mid-March due to the global semiconductor chip shortage, while vehicles at two other factories would only be partially built. GM, whose shares dipped 1% after the announcement, did not disclose the impact volumes or say which supplier and vehicle parts were affected by the chip shortage. But it said it would focus on keeping production running at plants building its highest-profit vehicles, full-size pickup trucks and SUVs. GM said it intended to make up as much lost production as possible once the shortage chip eased. "Semiconductor supply remains an issue that is facing the entire industry. GM's plan is to leverage every available semiconductor to build and ship our most popular and in-demand products," GM spokesman David Barnas said. GM said it was extending downtime at its U.S. plant in Fairfax, Kansas, its Canadian factory in Ingersoll, Ontario, and its Mexican facility in San Luis Petosi until mid-March when it would reassess the situation, he said. In addition, GM would build but leave incomplete for final assembly vehicles at Wentzville, Missouri, and its Mexican plant at Ramos Arizpe. GM vehicles affected by the idled plants include the Chevrolet Malibu sedan, Cadillac XT4 SUV, Chevy Equinox, and GMC Terrain SUVs. Vehicles to be left incomplete for now included the Chevy Colorado, GMC Canyon pickups and Chevy Blazer SUV. This week, GM had said it was idling the three factories where it has now extended downtime and said it would halve production at a plant in South Korea. The chip shortage has affected many automakers, including Toyota, Volkswagen, Stellantis, Ford, Renault, Subaru, Nissan, Honda and Mazda. Asian chipmakers are rushing to boost production but say the supply gap will take many months to plug. German chipmaker Infineon said the shortage would get worse in the near term. The chip shortage is expected to cut global output in the first quarter by more than 670,000 vehicles and last into the third quarter, IHS Markit said. AutoForecast Solutions estimated total lost production this year could reach 1 million vehicles. Honda and Nissan said on Tuesday they would sell 250,000 fewer cars in total this financial year due.

GM Cadillac chief: New CT5 will replace 3 sedans; EVs coming

DETROIT - The head of General Motors' Cadillac luxury division said on Thursday the brand will shrink its lineup of sedans and expand its offerings of sport utility vehicles and hybrid and electric vehicles in response to market shifts. Expanding Cadillac's global sales is central to GM's overall profit strategy, and Cadillac has reported a 27 percent increase in worldwide sales through the first half of the year. However, in the United States, now the brand's second largest market behind China, Cadillac sales are down 1.6 percent and combined sales of the brand's four sedan models have plummeted 16.3 percent through the first half of the year. That has forced GM to order layoffs at two Michigan factories that build Cadillac cars, and raised questions about the long term future of the plants. "We have to rebalance our sedan portfolio," Johan de Nysschen told Reuters in interview, offering new details about the strategy. Cadillac will not directly replace the current XTS, CTS or ATS sedans when they end their life cycles in 2019, he said. Instead, Cadillac will use a single new car called the CT5 to appeal to consumers shopping for sedans priced between $35,000 and $45,000. New versions of the CT6 sedan will be offered to customers who want a larger car starting at $50,000. Sources had told Reuters last week that GM was considering ending production on six cars including the CT6 and XTS and models from Chevrolet and Buick. That report now appears only half-right as far as Cadillac is concerned. The new CT5 will be built at a factory near Lansing, Michigan, that currently builds the slow-selling Cadillac ATS and CTS models. A small luxury sedan to compete with the Audi A3 will be built in the same plant, de Nysschen said. Cadillac will offer more SUVs, starting with a compact model called XT4, followed by a larger SUV with three rows of seats due by 2019 to compete with vehicles such as Volvo's current XC90 model. Volvo, owned by China's Zhejiang Geely Holding Group, scored a public relations coup by announcing plans earlier this month to power all its vehicles with either hybrid or all-electric technology starting in 2019. The move challenges Tesla, which has eclipsed more established brands with tech savvy luxury buyers. Cadillac has plans "not dissimilar to what Volvo has announced," with more electrified vehicles launching in the second half of the next decade, de Nysschen said.

Hotter Cadillac CT5-V could use the CTS-V's 6.2-liter V8

Cadillac is in the final stages of testing the high-performance variant of the CT5, prototypes are racking up miles all over the world, and a recent report sheds light on the engine screaming between its punched-out fenders. It's a V8, to no one's surprise, but it's not the twin-turbocharged, 4.2-liter unit many believed the sedan would use. Sources familiar with Cadillac's product plan told Car & Driver the hotter CT5 — whose name hasn't been revealed yet — will receive an updated version of the supercharged 6.2-liter V8 that powered the mighty CTS-V. It developed 640 horsepower in the firm's last German-bashing super-sedan, though where engineers will peg the CT5's output remains to be seen. It will roast the rear tires through a paddle-shifted automatic transmission. The publication explained Cadillac chose the 6.2-liter because it's more compact than the 4.2-liter Blackwing engine it developed for the CT6. The former features a pushrod design, while the latter gets twin overhead cams that make it taller and wider. The CT5 is a new model, but its Alpha platform is older than Cadillac's newest V8. Cadillac hasn't announced what will power the flagship CT5. The model is tentatively due out in showrooms before the end of 2020, so we expect to learn more about it in the coming months. Seeing it in the metal for the first time during the 2020 Detroit Auto Show in June isn't entirely out of the question. What's next? If the report is accurate, the much-hyped Blackwing may end up being an orphan engine. It was developed specifically for the Cadillac brand, and inaugurated by the CT6-V that recently went out of production. The many rumors claiming General Motors will put the engine in other models to recoup its investment are falling like dominoes. It won't fit in the CT5, so there's no reason to believe it will end up in the smaller CT4; its flagship version will likely arrive with a twin-turbocharged, 3.6-liter V6 borrowed from the ATS-V. An earlier report claims the next-generation Escalade won't use the Blackwing, either, because making it fit would cost too much. Looking beyond Cadillac, the only General Motors-owned brand that could use the Blackwing is Chevrolet, since we can't imagine the GMC Yukon will get it if the Escalade doesn't. The Tahoe/Suburban duo is off the table, too.