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GM and Ford quarterly sales continue to slump in China

BEIJING — General Motors and Ford announced their quarterly sales in China fell, albeit at a slower pace sequentially, as the U.S. automakers were hit by a slowing economy amid the Sino-U.S. trade war. GM's vehicle sales in China for the quarter ended June 30 dropped 12.2%, while Ford's sales slumped by 21.7%. While GM also suffered from heightened competition in its key mid-priced SUV segment, Ford was hurt by the limited new models for customers to choose from. For the first quarter of this year, Ford's sales in China tumbled 35.8 percent while GM's skid 17.5 percent. Still, the numbers from GM, the second biggest international automaker in China by sales, and Ford portend more uncertainty for the industry which is trying to rebound from a downward spiral that led to its first annual sales decline last year in more than two decades. GM delivered 1.57 million vehicles in China in the January-June period this year, while Ford delivered 290,321 vehicles. China's factory activity shrank more than expected in June, highlighting the need for more economic stimulus amid higher U.S. tariffs and weaker domestic demand. Annual car sales in China fell last year for the first time since the 1990s, and they are expected to fall this year too. Sales tumbled 16.4% in May from the same month a year prior, the China Association of Automobile Manufacturers (CAAM) said. That marked the 11th consecutive month of decline and followed falls of 14.6% in April and 5.2% in March. U.S. car companies' share of total China passenger vehicles sales fell to 9.6% in the first five months of this year from 10.9% in the year-ago period, according to CAAM. Over the same period, German car makers' share has risen to 23.3% from 20.9% and Japanese auto makers' to 21.3% from 17.3%. CAAM is set to announce June sales next week, which industry analysts forecast will be negative.   New models In China, GM has a joint venture with SAIC Motor Corp, in which the Buick, Chevrolet and Cadillac are made. It also has another venture, with SAIC and GuangxiAutomobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of GM's affordable brand Baojun dropped 31.8% for the latest quarter. But luxury brand Cadillac's sales jumped 36.6%. GM sold 3.64 million units in China last year, down from 4.04 units in 2017. Ford makes cars in China through its joint venture with Chongqing Changan Automobile Co and Jiangling Motors Corp (JMC).

Why an independent rear suspension for GM's new, full-sized SUVs wasn't easy

A Motor Trend report last month laid out how Cadillac's 4.2-lier twin-turbo Blackwing V8 could be an orphan due to cost concerns in the GM empire. Last-minute chassis changes to Cadillac's new sedans and XT6 crossover led to engine bays that couldn't fit the Blackwing. On the SUV side, according to the report, the new independent rear suspension for big people haulers cost so much to implement that GM ruled out reworking the Escalade to accept the Blackwing. At least one commenter rightly asked how could a suspension swallow that much money. A new piece in Motor Trend has the answer. The excellent Alissa Priddle spoke to Tim Herrick, GM's executive chief engineer for full-size trucks, about why the clean-sheet IRS cost "multimillions of dollars."  First, GM would need to build a new body shop at the Arlington, Texas plant that assembles the automaker's big SUVs to stamp the numerous wholly new parts and panels accommodating an IRS. Then GM would need to design and pay for a new assembly process. On top of those up-front costs, there was the incremental cost of the four-link IRS components being more expensive than those in the trucks' former leaf-sprung solid axles. Herrick endured so many rejections for so long that he remembers the date and time when he got approval for the new unit. He said it came down to a meeting where he told a higher-up, "I'll make you a deal: If we get to the reveal, or if we launch this and you think this was a dumb idea, I'll hand you my badge and let you walk me out." Head to Motor Trend to read the full story. Based on Herrick being on stage to help present the new SUVs to the press, and on our First Ride in the new Chevrolet Tahoe and Suburban at GM's Milford Proving Grounds, it appears this will have a happy ending for all involved. Furthermore, since Herrick worked on the T1 platform that supports the big SUVs as well as the light- and heavy-duty pickups, he understood the demands on the commercial side, too. That could be why when Roadshow asked Tim Asoklis, chief engineer of the Tahoe and Suburban, if the new IRS could endure life in the Chevrolet Silverado and GMC Sierra, Asoklis answered, "Oh, absolutely." Related Video:    

Cadillac to ditch China-only LWB models for global 'right size'

We often think of Buick being General Motors' poster child in China, but would it surprise you to hear that Cadillac is just doing a bang-up job in the People's Republic? It's true, the Standard of the World is on fire, and it's doing so with a surprising group of buyers that are going to push through globe-spanning changes for the brand. Cadillac's average buyer age in the People's Republic of China is just 34. Yes, younger buyers dominate the Chinese market, but according to Reuters, Cadillac's young buyers want to drive and they don't want the typical businessman's German-badged sedan. Cadillac understands this, and is setting about to exploit it with a shift in its Chinese strategy. According to President Johan de Nysschen, the company will begin moving away from the China-only, long-wheelbase models, like the ATS-L. Instead, it will push for a global "right size" design, along with some stylistic changes. "You will see a softening of some of the hard edges, and more three-dimension styling on the side of the car," de Nysschen told Reuters, while noting that the cars will still be "instantly recognizable as Cadillac." Even without these changes, though, Cadillac has bucked the trend in China. At 17 percent, the company's sales exceeded the PRC's overall market growth of 7.3 percent by a significant margin. In fact, Cadillac's 2015 gains outpaced the overall market growth in China over the past three years, as the brand jumped to nearly 80,000 units. And the company is hoping to push that even higher, Reuters reports, with President Johan de Nysschen targeting a 25-percent increase in 2016. Related Video: