2002 Cadillac Escalade Base Sport Utility 4-door 6.0l 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.

GM to build $1.3 billion Cadillac plant in China

General Motors has gotten approval to build a $1.3 billion manufacturing facility for its Cadillac brand in China. China's National Development and Reform Commission signed off on plans for GM to build the plant in the country's Shanghai's Jinqiao zone; construction is expected to begin in June of this year. According to a Bloomberg report, the plant will have an annual production capacity of 150,000 units.
No surprise here, but Cadillac would like to sell a lot more cars in the plush Chinese luxury market. The brand moved only 30,010 cars in China last year, compared with 400k for Audi, and about 330k for BMW. With Cadillac already telling us that it would be moving production of its XTS sedan to China - a production decision that saves having to pay 25-percent import tariffs - approval of the factory is a critical win for the company.
In fact, according to earlier comments by GM China president Bob Socia, it's at least conceivable that Chinese-built Cadillacs could be shipped back to the US for sale. The brave new world of globalization, getting stranger by the minute.

NHTSA investigating nearly 750,000 GM models over non-deploying airbags

Nearly 750,000 vehicles built by Chevrolet, GMC, and Cadillac are the subject of a National Highway Traffic Safety Administration (NHTSA) investigation due to non-deploying driver-side airbags. While the investigation is ongoing, the agency believes the issue is likely due to rust particles that form on the inflator's connection terminal interface. The list of nameplates included in the investigation includes Chevrolet's Silverado, Tahoe, and Suburban, GMC's Sierra, Yukon, and Yukon XL, plus Cadillac's Escalade, Escalade ESV, CT4, CT5, and XT4. All of the potentially affected vehicles are 2020 or 2021 models, according to a bulletin published on the NHTSA's website. Investigators launched the probe in April 2021 after 15 consumers reported airbag-related issues, including nine who said an airbag malfunction light appeared in the instrument cluster. More alarmingly, the NHTSA is aware of six accidents that caused significant damage to the car's front end yet didn't trigger the driver's airbag. It adds that there are no fatalities linked to the issue, but there are six crashes and eight injuries reportedly blamed on it. No evidence suggests this problem is related to the millions of potentially deadly Takata inflators recalled over the past few years. General Motors is aware of the defect. It sent a technical service bulletin (TSB) to its dealers in March 2021 to address the aforementioned warning light. The note explains the issue is due to "rust particles in the connection terminal interface of the driver's airbag inflator." The company hasn't issued a safety recall yet, however. Whether it will partially depends on the NHTSA's findings. It's currently looking into the scope and the severity of the problem, and it wants to understand its implications on driver safety. Investigators will decide whether General Motors needs to recall the 749,312 cars that are part of the probe when they close their investigation. General Motors has already spent a significant amount of money replacing defective airbag-related parts in its cars. In November 2020, it was ordered by the American government to recall nearly 6 million pickup trucks and SUVs equipped with potentially dangerous Takata airbag inflators. It repeatedly argued that testing proved the inflators were safe, and it petitioned the agency four times starting in 2016 to avoid a recall, which cost an estimated $1.2 billion (about a third of its net income in 2020).