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Cadillac SRX production moving to TN, next-gen Equinox going to Mexico

It's a good week for the town of Spring Hill, TN, as General Motors has announced that its factory in the city of 31,000 will receive a $185 million contract to produce engines. On top of that, the next-generation Cadillac SRX crossover will be built at the factory (NA models are presently built in Ramos, Arizpe Mexico), which was once famous for being the home of GM's now-defunct Saturn brand.
The factory is one of GM's six facilities around the globe that will screw together the company's new line of three- and four-cylinder Ecotec engines. Spring Hill currently builds the 2.0-liter, turbocharged Ecotec, as well as the naturally aspirated 2.4 and 2.5-liter variants.
Spring Hill's vehicle assembly lines were idled in 2009, but were reactivated in 2011. The SRX is just one of the products meant to benefit from last year's $350-million investment, and should have a positive impact, creating or retaining around 1,800 positions at the factory.

U.S. new-vehicle sales in 2018 rise slightly to 17.27 million [UPDATE]

DETROIT — Sales of new vehicles in the U.S. rose slightly in 2018, defying predictions and highlighting a strong economy. Automakers reported an increase of 0.3 percent over a year ago to 17.27 million vehicles. The increase came despite rising interest rates, a volatile stock market, and rising car and truck prices that pushed some buyers out of the new-vehicle market. Industry analysts and automakers said strong economic fundamentals pushed up sales and should keep them near historic highs in 2019. "Economic conditions in the U.S. are favorable and should continue to be supportive of vehicle sales at or around their current run rate," Ford Chief Economist Emily Kolinski Morris said after the company and other automakers announced their sales numbers Thursday. That auto sales remain near the 2016 record of 17.55 million is a testimonial to the strength of the economy, said Mark Zandi, chief economist at Moody's Analytics. The job market, he said, has created new employment, and wage growth has accelerated. "That's fundamental to selling anything," he said. "If there are lots of jobs and people are getting bigger paychecks, they will buy more." The unemployment rate is 3.7 percent, a 49-year low. The economy is thought to have grown close to 3 percent last year, its best performance in more than a decade. Consumers, the main driver of the economy, are spending freely. The Federal Reserve raised its key interest rate four times in 2018 but is only expected to raise it twice this year. Auto sales also were helped by low gasoline prices and rising home values, Zandi said. It all means that people are likely to keep buying new vehicles this year even as they grow more expensive. The Edmunds.com auto-pricing site estimates that the average new vehicle price hit a record $35,957 in December, about 2 percent higher than the previous year. It will be harder for automakers to keep the sales pace above 17 million because they have been enticing buyers for several years now with low-interest financing and other incentives, Zandi said. He predicts more deals in the coming year as job growth slows and credit tightens for higher-risk buyers. Edmunds, which provides content, including automotive tips and reviews, for distribution by The Associated Press, predicts that sales will drop this year to 16.9 million.

Cadillac president de Nysschen says electrification coming 'across the spectrum'

We like to pick on new Cadillac president Johan de Nysschen for his insistence, many years ago, when he was president of Audi of America, that plug-in vehicles are for idiots. Listening to him give the keynote address at the Washington Auto Show today, you wouldn't know he ever said anything negative about an electric vehicle. Instead, he sounds something like a EV-angelist. De Nysschen said that Cadillac will be able to benefit from GM's considerable expertise in plug-in technology, which he said would be "applied across the spectrum of our portfolio." GM's electric committment will help in "making electrification commonplace." With the plug-in ELR already on the road, de Nysschen said that the company's next step in advancing powertrains will be the introduction of stop/start technology – which de Nysschen called an "important system to reduce fuel consumption and CO2 emissions" – into a Cadillac for the first time later this year. Without giving any specific details, de Nysschen said that Cadillac will introduce eight new models (not necessarily plug-ins) by the end of this decade, including five that "will take Cadillac into market segments where the brand is not even present today." These new vehicles will likely be much lighter than today's vehicles, de Nysschen said, because "weight reduction today is critical to automotive design, it helps to improve fuel efficiency and contributes to desireable vehicle dynamics." The key is to reduce weight without compromising safety or comfort and to use the right material – steel, aluminum, carbon fiber – in the right place at the right time. It was a not-so-subtle jab at Ford and its new aluminum F-150. "In the pursuit of weight reduction, some manufacturers have also opted for abandoning steel and have gone for an all-aluminum approach," he said. "At Cadillac, we believe that different materials each present particular advantages in specific applications. There is no single material that represents the optimum balance of the conflicting objectives of every single application." Related video: