1976 Cadillac Eldorado on 2040-cars

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Even if GM does close all 5 of those plants, it'll still have too many

DETROIT — General Motors' monumental announcement on Monday that it will close three car assembly plants and two powertrain plants in North America and slash its workforce will only partially close the gap between capacity and demand for the automaker's sedans, according to a Reuters analysis of industry production and capacity data. Sales of traditional passenger cars in North America have been declining for the past six years and are still withering. After GM ends production next year at factories in Michigan, Ohio and Ontario, it will still have four U.S. passenger-car plants — all operating at less than 50 percent of rated capacity, according to figures supplied by LMC Automotive. In comparison, Detroit-based rivals Ford and Fiat Chrysler Automobiles will have one car plant each in North America after 2019. The Detroit Three are facing rapidly dwindling demand for traditional passenger cars from U.S. consumers, many of whom have shifted to crossovers and trucks. Passenger cars accounted for 48 percent of retail light-vehicle sales in the United States in 2014, according to market researchers at J.D. Power and Associates. This year, sedans will account for less than a third of light vehicle sales. That shift in turn has left most North American car plants operating far below their rated capacities, while many SUV and truck plants are running on overtime. The collapse in passenger-car demand is a challenge for nearly all automakers in the United States, including Japan's Toyota and Honda, which have the top-selling models in the compact and midsize car segments. Toyota executives said last month they are evaluating the company's U.S. model lineup. But Toyota also plans to build compact Corolla sedans at a new $1.6 billion factory it is building in Alabama with partner Mazda. The obstacles facing GM in its plans to close more auto factories became apparent on Tuesday as U.S. President Donald Trump threatened to block payment of government electric vehicle subsidies to GM. While it is not certain that Trump unilaterally has the power to do that, he made it clear he intends to use his office to pressure the company to keep open a small car plant in Ohio that GM says will stop building vehicles in March.

Cadillac follows Lincoln in going back to proper names

Who else is excited for the 2025 Cadillac Fleetwood Brougham? Right, don't all excitedly jump up and down at the same time. May make Earth wobble. In an interview with multiple outlets (and brought to our attention by Reuters and CNET Roadshow) that mostly covered Cadillac's electrification plans, Cadillac President Steve Carlisle indicated that the brand's Euro-style alphanumeric naming strategy will mercifully be coming to an end. CNET indicates it'll correspond with the rollout of new EV models, but we wouldn't be surprised to see it happen even earlier. Lincoln's similar decision has already proven to be successful, and it's always seemed like a matter of time before Cadillac followed suit given the two brands' similar history and market segments. The current naming convention of CT(number) for cars and XT(number) for crossovers was hatched in 2014 and is widely credited to former Cadillac president Johan de Nysschen, who had previously transformed Infiniti's naming convention into something similarly Germanic. That the man previously worked at Audi should be a surprise to no one. While people have generally been confused by the switch, we can't say it's any worse than the old CTS, XTS, ATS and SRX business that came before. At least de Nysschen's system had a hierarchy. Yet, for a brand once known for grand, stately cars and equally grand, stately names like Eldorado, Seville and, yes, Escalade, a European-style alphanumeric strategy never seemed right. It was at least indicative of Cadillac's constant attempts to emulate German brands rather than setting its own, uniquely American course (as Lincoln has done recently). That the most American and successful of its lineup, the Escalade, hung onto its name through thick-and-thin speaks volumes. So, will we really be seeing that '25 Fleetwood Brougham? That does seem rather doubtful. Beyond Eldorado, there's not a lot out there in the back catalog that doesn't reek of crusty old country club luxury. Or was garbage. Perhaps sampling from Cadillac's concept car file with something like Elmiraj? Whatever it comes up with, though, how could it be worse than simultaneously selling an XT5 and XTS? Cadillac Future Vehicles Luxury

Why Cadillac is willing to lose 43 percent of its dealers

Cadillac is offering about 400 dealers in the United States a lump sum of money to close down. That represents over 40 percent of Cadillac dealers in America. Offers start at $100,000 and top out at $180,000. The average offering is around $120,000. According to Automotive News, Cadillac chief Johan De Nysschen estimates it will cost the automaker around $50 million to close these dealers. Any dealer that chooses to remain open will have to submit to Cadillac's ambitious Project Pinnacle, which will divide dealers into incentive categories based on how many units they sell. "Every single Cadillac dealer will have the potential to earn significantly higher profits than they do today," says De Nysschen. Dealers have until November 21 to decide if they want to take the cash or submit to Project Pinnacle. A logical question: Why is Cadillac willing to spend $50 million to close down 43 percent of its dealers? First, GM's luxury brand has way more dealerships than it needs. Second, the 400 dealers with offers to shutter each sold 50 or fewer vehicles in 2015, representing just 9 percent of its sales volume in America. So, while closing these smaller dealerships may have a small initial impact on sales, it's not going to be a major hit to Cadillac. Related Video: News Source: Automotive News - sub. req.Image Credit: Gary Cameron / Reuters Cadillac Car Dealers Luxury Performance