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GM is quietly slashing prices on base models

While General Motors' fourth quarter financial figures haven't yet been released, the automaker seems to be weathering a potentially rocky time well, even beating third-quarter projections last year. To keep the climb going, the company is launching new base trims for several popular models that make them cheaper than ever but with tight dealer margins. The new entry-level trims are the Chevrolet Cruze L, Equinox L, GMC Terrain SL and Buick LaCrosse 1SV. Buyers lose some content by picking them, but the prices are slashed. According to Cars Direct, the biggest savings are on the LaCrosse, where customers pay $31,065, plus $925 destination, $2,570 less than the previous base 1SB trim but must accept things like 17-inch wheels and no cargo net in the back. If you're wondering how Buick can remove only a little equipment but cut the price so much, it's because the company also slashed dealer margins. According to Cars Direct, the difference between the invoice and MSRP for the LaCrosse 1SV is only around $150, compared to around $1,350 before. The disparity is even greater for the Cruze with an $81 difference in the prices, compared to about $600 for the LS version. Showrooms are expected to keep very low stocks of these trims, though. "Dealers use such vehicles to get people in the door, but they do not generally want to do high volumes of these strippers. The margins are next to nothing; they don't make much money off these cars," said Ed Kim, Vice President of Industry Analysis for AutoPacific to Autoblog. Dealers are also expected to advertise that these new base trims undercut major competitors. For example, the Cruze L rings up for about $2,320 less than a Honda Civic LX, according to Cars Direct. One potential drawback for buyers is that these models might not be eligible for incentives. While the attractive prices might get customers into dealers, folks may not actually end up driving home with these entry-level models. Kim indicated base trims also make up a small portion of the sales mix. "Consumers aren't asking for stripped out vehicles, even at the low end of the marketplace," he said. Featured Gallery 2015 Chevrolet Cruze View 9 Photos News Source: Cars DirectImage Credit: Chevrolet Buick Chevrolet GM GMC Car Buying Car Dealers Crossover Sedan gmc terrain cheap cars

GM workers in Oshawa walk out in protest of plant closure

TORONTO/MONTREAL – Canadian Prime Minister Justin Trudeau on Monday expressed his "deep disappointment" in General Motors' decision to close its Oshawa plant, a move Canadian officials only learned about on Sunday and which led workers to walk off the job on Monday. GM said the closure affects a total of 2,973 assembly line jobs. GM's total employment in Canada is 8,150 direct jobs. Workers in the Unifor trade union walked out of the Oshawa plant "in protest," ahead of a meeting with GM about the announcement, a union spokeswoman said. "I've moved my family twice for this company and they do this to me," a tearful worker told CBC TV as he left the plant. Currently, the Oshawa plant builds the Cadillac XTS and Chevy Impala sedans. Under Unifor's four-year contract signed in 2016, GM must give the union a year's notice before closing the plant. The automaker intends to close the plant in December, 2019. A 2015 study commissioned by Unifor, which represents GM employees, estimated that shutting the plant would eliminate 4,100 direct jobs and reduce Ontario's gross domestic product by C$1.1 billion. But Jerry Dias, president of Unifor, said the move amounts to a breach of the automaker's contract with its employees. "We have a collective agreement that says they're not closing any of our facilities ... so we will do anything by any means to make sure that they live up to their word," Dias said at a news conference. Dias said the contract between Unifor and the company forbids GM from closing any of its Canadian plants during the contract period, which ends in September 2020. "They are not closing our damn plant without one hell of a fight." Canadian officials promised to aid auto workers affected by the 2019 closure, part of a wider restructuring by the automaker that will cut production of slow-selling models and slash its North American workforce. "I spoke with GM (CEO) Mary Barra to express my deep disappointment in the closure," Trudeau tweeted on Monday. "We'll do everything we can to help the families affected by this news get back on their feet." GM workers have been part of the heart and soul of Oshawa for generations - and we'll do everything we can to help the families affected by this news get back on their feet. Yesterday, I spoke with @GM's Mary Barra to express my deep disappointment in the closure.

GM marks 500 million vehicles

General Motors is marking a major global milestone, as 500 million vehicles have rolled off its assembly lines since the company's founding in 1908. To mark the occasion, the automaker is continuing to invest in production and offering a one-time discount to some customers. GM North America boss Alan Batey used the festivities to announce the Fairfax Assembly factory in Kansas as one of the sites earmarked for the company's $5.4 billion in upcoming investments. The plant will get $174 million of that money for new equipment and technology to build the 2016 Chevrolet Malibu. Among the upgrades will be a shake-and-rattle booth that will simulate road conditions to find squeaks. To commemorate both the production milestone and the Fairfax plant, Batey and company CEO Mary Barra also gave away a 2016 Malibu to a wounded Iraqi war veteran, and the two execs announced that in the third week in May all GM employees can share a one-time customer appreciation discount with friends to help get them into the automaker's products. Barra also gave a speech to the workers there about some of the other milestone's in the company's history, which you can read below. Innovation on the Line: GM Manufacturing Milestones Many of General Motors' most important innovations have occurred behind the scenes, in its manufacturing facilities. Concepts such as changeover, flexible assembly, automation, computer simulation, machine vision and robotics were developed at GM. Over the decades these innovations have helped enable improvements in vehicle quality, efficiency and competitiveness. 1901: Ransom Olds' famous Curved Dash Oldsmobile, designed with simplicity, reliability and value in mind, was the first American car built in a factory designed specifically for automobiles and in standardized volume production. GM acquired Oldsmobile in 1908. 1908: Cadillac wins the Dewar Trophy, Europe's most prestigious award for precision and excellence in manufacturing, by demonstrating the auto industry's highest standards for precision and interchangeability of parts by disassembling three Cadillacs and mixing the parts randomly before reassembling and driving them before a contingent of judges. 1922: GM hires William Knudsen to lead Chevrolet's turnaround. Knudsen implements flexible mass production, which helps Chevrolet incorporate annual styling changes and take market share from Ford.