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GM laying off 510 amidst slow Cadillac, small car sales

General Motors is laying off about 510 workers from two factories beginning in January, and it could be months before the automaker needs some of that latent capacity to come back on line. A combination of poor sales and high dealer inventories are prompting the cutbacks, according to Automotive News.
The largest changes come at GM's Lansing Grand River plant, where the Cadillac ATS and CTS are made. An entire shift of about 350 workers is being laid off, but the automaker hopes to find positions for some of them at other nearby factories. The decision leaves just a single shift building vehicles there. According to Automotive News, the move is partially spurred by Johan de Nysschen's plan to make Cadillac a more exclusive brand.
The lost shift will likely return for production of the next-generation Chevrolet Camaro at the plant, according to the report, but GM isn't saying when that will be. A previous announcement from the Canadian Auto Workers union indicated that the Oshawa, Ontario, factory would lose the coupe in late 2015 or early 2016.

Cadillac could base its entry-level sedan on the Chevy Cruze [UPDATE]

UPDATE: Cadillac spokesperson Donny Nordlicht tells Autoblog , "The post speculating on a future Cadillac model derived from the Chevrolet Cruze is completely false." Premium automakers Mercedes-Benz and Audi have seen plenty of success with new small front-drive-based sedans. The CLA-Class had its best January ever this year, while Audi moved more of its new A3 in 2015 than its predecessor sold in 2005 through 2010 combined. The fact that Cadillac wants a piece of that pie is no surprise, then. There's a new rumor that GM's luxury brand could launch its own compact – possibly called CT2 – to battle the Germans. Cadillac, a brand that's pushed hard to rebuild its rear-drive reputation, could develop a new entry-level model based on the front-wheel-drive 2016 Chevrolet Cruze's D2XX platform. Go ahead and make your Cimarron jokes. Sources are telling GM Inside News that a Cadillac built on the Delta platform would ditch the Cruze's turbocharged 1.4-liter four-cylinder for a 1.5-liter turbo in base models. General Motors' well received 2.0-liter turbo four would serve in higher-end models. According to GMIN, the Delta-based Cadillac would likely command a $6,000 to $9,000 premium over the Cruze, so figure $23,000 to $26,000 on the low end to $30,000 to $33,000 for something at the top of the range. As much as we dislike the kind of badge engineering that brought us the Cavalier-based Cadillac Cimarron in the '80s, the company has done an admirable job of distinguishing vehicles on shared platforms lately. A Delta-platform Cadillac would at least have a good basis – the new Cruze is surprisingly comfy. That said, we question GM's rationale if this rumor is indeed true. Put simply, Cadillac needs another sedan like I need another student loan payment. The company has four sedans, three of which overlap two segments, and none of which are selling very well. That's not because they're bad, but because customers want crossovers, of which Caddy has but one – the new XT5. Spending the time and money to add a fifth sedan to the mix when the company desperately needs to flesh out its CUV range would be a tremendous mistake. As much as we hate to say it, if Cadillac really wants to add a small, entry-level car to its range, it'd better be a crossover. Related Video:

Cadillac XT5 confirmed for 2016 as next-gen SRX

Cadillac's entire lineup of 2016 models gets a major infotainment upgrade this summer with improvements to CUE and integration with Apple CarPlay and Android Auto. There's one major exception for now, though. The SRX retains the old system until its all-new generation, called the XT5, debuts early in the 2016 calendar year. "When we transition into all new product lines, we will evolve the naming convention to suit the new classification we have announced. So SRX becomes XT5 next year," company spokesman David Caldwell said in an email to Autoblog. Earlier spy shots and rumors suggest the XT5 might be offered with a turbocharged four-cylinder and naturally aspirated six-cylinder engines, plus a nine-speed automatic transmission. For the rest of Cadillac's models, CarPlay arrives with the launch of the 2016 vehicles, and Android Auto joins later. Using either of them requires a connection via USB, and they add a new projection icon on the CUE screen. Once activated, both systems integrate with driver's phone and incorporate features like navigation, music, and contacts. They can also accept voice commands. Even for those that don't want to hook up a smartphone, CUE should work better thanks to a more powerful processor. Start-up times for the infotainment system are expected to be faster, and Cadillac claims that it's also more responsive for voice recognition, navigation searches, and media. The navigation interface is simplified, as well. The Escalade, CTS, and XTS can now be ordered with a 360-degree camera system to display on the screen. Cadillac Enhances Phone Integration for 2016 Models with Apple CarPlay, CUE Upgrades APPLE CARPLAY AVAILABLE AT LAUNCH; ANDROID AUTO COMING LATER IN MODEL YEAR 2015-06-09 NEW YORK – Cadillac's 2016 model year products will feature enhanced connectivity and control, including the addition of Apple CarPlay and Android Auto, the predominant new systems for in-car phone integration. These additions are part of a broader enhancement of CUE, Cadillac's user experience, with new features and a faster, streamlined operation. Apple CarPlay will debut in 2016 Cadillac models featuring CUE's 8-in multi-touch screen except the SRX Crossover, a model that will move to an all-new generation in early 2016. Android Auto is expected to be phased into 2016 production at a later date. The 2016 model year will begin this summer.