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GM Cadillac chief: New CT5 will replace 3 sedans; EVs coming

DETROIT - The head of General Motors' Cadillac luxury division said on Thursday the brand will shrink its lineup of sedans and expand its offerings of sport utility vehicles and hybrid and electric vehicles in response to market shifts. Expanding Cadillac's global sales is central to GM's overall profit strategy, and Cadillac has reported a 27 percent increase in worldwide sales through the first half of the year. However, in the United States, now the brand's second largest market behind China, Cadillac sales are down 1.6 percent and combined sales of the brand's four sedan models have plummeted 16.3 percent through the first half of the year. That has forced GM to order layoffs at two Michigan factories that build Cadillac cars, and raised questions about the long term future of the plants. "We have to rebalance our sedan portfolio," Johan de Nysschen told Reuters in interview, offering new details about the strategy. Cadillac will not directly replace the current XTS, CTS or ATS sedans when they end their life cycles in 2019, he said. Instead, Cadillac will use a single new car called the CT5 to appeal to consumers shopping for sedans priced between $35,000 and $45,000. New versions of the CT6 sedan will be offered to customers who want a larger car starting at $50,000. Sources had told Reuters last week that GM was considering ending production on six cars including the CT6 and XTS and models from Chevrolet and Buick. That report now appears only half-right as far as Cadillac is concerned. The new CT5 will be built at a factory near Lansing, Michigan, that currently builds the slow-selling Cadillac ATS and CTS models. A small luxury sedan to compete with the Audi A3 will be built in the same plant, de Nysschen said. Cadillac will offer more SUVs, starting with a compact model called XT4, followed by a larger SUV with three rows of seats due by 2019 to compete with vehicles such as Volvo's current XC90 model. Volvo, owned by China's Zhejiang Geely Holding Group, scored a public relations coup by announcing plans earlier this month to power all its vehicles with either hybrid or all-electric technology starting in 2019. The move challenges Tesla, which has eclipsed more established brands with tech savvy luxury buyers. Cadillac has plans "not dissimilar to what Volvo has announced," with more electrified vehicles launching in the second half of the next decade, de Nysschen said.

Cadillac says it made CUE infotainment a lot better

We've never been huge fans of CUE, the Cadillac User Experience infotainment interface. It's been around a few years now, and the best thing we can say for it is that it now supports Android Auto and Apple CarPlay, making it easy enough to replace most of the interface with a familiar smartphone-based system. Now Cadillac has made some big upgrades to the system that should address at least some of our concerns. First and foremost, the system is claimed to be more intuitive, with a more logical interface design. Cadillac has added a Summary View that gives an overview of the climate, media, navigation, and phone all at the same time. The system will also be able to receive over-the-air updates, allowing Cadillac to make improvements more often and push them out to owners' cars, mush like Tesla and other automakers already do. The 4G LTE connection will also be used to connect the car with the cloud, where drivers can store and modify their own personalized set of settings. This My Driver Preferences profile will include things like contacts, navigation preferences, and recent destinations, and will also follow them from one car equipped with the system to another. That should come in handy for anyone subscribing to the $1,500-a-month Book by Cadillac vehicle subscription service, which allows participants to swap between cars when they choose. The cloud connection will also carry over to a new available navigation function, which Cadillac claims has a more intuitive, smartphone-like interface. It uses its data connection to provide current destination info and is supposed to learn a driver's habits, such as their preferred routes and frequent destinations, which the system will then attempt to offer up predictively – so the car should be able to know that you're heading home at 5:00. Additional apps for the system will be available through Cadillac's new Collection app store. And it's still compatible with Android Auto and Apple CarPlay. One sore spot that appears to have been improved is the digital gauge package, although Cadillac hasn't offered details on that extension of the system. The current iteration's ability to over-customize the interface (our personal favorite is the option to display a total of four speedometers between the head-up display and the gauge screen; see video below) and unintuitive controls make it difficult to use and learn, while the simulated gauges don't look particularly realistic.

GM announces net 220 job increase as Trump visits Michigan

GM announced today that about 900 jobs would be added (or, importantly, retained) ahead of President Trump's arrival in Michigan, where he is expected to discuss his plan to roll back fuel economy standards. The timing of the announcement is almost certainly not coincidental, as appending it to a Trump visit gives it a higher profile and dovetails with the President's jobs agenda. It's less likely the decision itself was made for those reasons, but the free PR boost is a nice bonus. As for those 900 jobs themselves, they aren't all new jobs. The only net gain is approximately 220 jobs at the Romulus Powertrain Plant, which produces the 10-speed automatic transmission that's proliferating through the company's lineup. The 180 jobs at Flint Assembly and 500 jobs at Lansing Delta Township are retained jobs – that is to say, spots the company found for workers who would otherwise have been laid off. By the way, the Flint jobs will help with production of heavy-duty pickups, and the Lansing jobs are to produce the Chevrolet Traverse and Buick Enclave. Finding jobs for manufacturing workers in the auto sector, whether new or retained, is admirable. No matter how GM couches it, the company has created or retained a total of 7,000 jobs this year, and its total reinvestment in US production is around $1 billion. But these decisions are business ones, not political ones – timing the announcements to make them seem inspired by economic policy, or the political situation, is simply smart PR. Related Video: Image Credit: Bill Pugliano/Getty Images Celebrities Government/Legal Buick Cadillac Chevrolet GMC