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GM may kill 6 car models as it works with UAW to tackle sales slump

The president of the United Auto Workers union said on Thursday the union is talking with General Motors about the potential threat to plants and jobs from slumping U.S. car sales. GM's response will be more trucks and SUVs, and sources say at least six slow-selling car models may be killed off. "We are talking to (GM) right now about the products that they currently have" at underused car plants such as Hamtramck in Michigan and Lordstown in Ohio, and whether they might be replaced with newer, more popular vehicles such as crossovers, Dennis Williams told reporters. "We are tracking it (and) we are addressing it," Williams added. GM has cut shifts at several U.S. plants this year as inventories of unsold cars have ballooned. Industry analysts said more jobs could be at risk as the automaker wrestles with permanently shrinking production of small and midsized sedans. GM is reviewing whether to cancel at least six passenger cars in the U.S. market after 2020, including the Chevrolet Volt hybrid, which could be replaced in 2022 with a new gasoline-electric crossover model, Reuters has learned from people familiar with the plans. Other GM cars at risk include the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala and Chevrolet Sonic, sources said. Some analysts have singled out GM's Hamtramck plant in Detroit as one of the most vulnerable because of plummeting car sales. The plant, which opened in 1985, builds four slow-selling models: Buick LaCrosse, Chevrolet Impala, Cadillac CT6 and Chevrolet Volt. In the first half, it built fewer than 35,000 cars, down 32 percent from the same period in 2016, according to suppliers familiar with GM's U.S. production schedule. The typical GM assembly plant builds 200,000-300,000 vehicles a year.COMING ATTRACTIONS: TRUCKS AND SUVS GM must "create some innovative new products" to replace slow-selling sedans "or start closing plants," said Sam Fiorani, vice president of AutoForecast Solutions. The auto maker already has begun to shift future production plans from cars to trucks, according to Morgan Stanley auto analyst John Murphy. He estimates that fewer than 10 percent of the new vehicle models that GM will introduce over the next four years will be passenger cars, with the rest divided among trucks, SUVs and crossovers. GM plans to add production of the new Cadillac XT4 crossover next year to its Malibu sedan plant in Fairfax, Kansas.

GM program sees dealers taking on way more loaner cars

Given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. Bring your car into the dealership for service, and you may need a loaner car in exchange. And with so many recalls being carried out, that means a lot of loaners – especially at General Motors dealerships. That could be one of the reasons why GM is massively expanding its loaner fleet program. While many Chevrolet and Buick-GMC dealerships have an on-site rental car location operated by a third party like Enterprise (which may or may not provide a GM vehicle), others manage their own loaner fleets. But while the range of dealerships operating such fleets was once small, reports Automotive News, the number has been growing rapidly: from the locations responsible for only 20 percent of those brands' sales two years ago to about 90 percent today. The impetus for that growth comes down to a massive expansion of GM's Courtesy Transportation Program. The initiative encourages dealers to ramp up their loaner fleet to a maximum size determined by GM, with a mix determined by the dealer itself, so that a showroom in Texas can be bolstered with a fleet of pickup trucks and a dealer in California can employ more Volt and Camaro Convertible loaners. The dealership gets a $500 credit for each vehicle its puts in its fleet, and can use those vehicles as loaners for service customers, as multi-day test drivers or to rent out separately. The vehicles remain in the dealer's fleet for 90 days or 7,500 miles, then they can be sold as used, but with new-car incentives. The dealer gets a fleet of loaners, customers get to use the loaners, try out a new car overnight or buy a barely used car with attractive incentives, and GM gets to clock more sales. But therein lies the kicker: the automaker counts the dispatch of the loaner new vehicle to the dealership as a new-car sale, which could end up distorting its sales figures. Counting loaner vehicles as sold vehicles is something of an industry-standard practice, but given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. One dealership - Paddock Chevrolet in Kenmore, NY, for example - had no loaner fleet two years ago, but now runs a fleet of 50 vehicles. Multiply that by the 4,000 or so dealers GM has across America and you're talking about the potential for hundreds of thousands of these sorts of sales.

Ringbrothers drops more hints about its wild SEMA creations

Ringbrothers isn't finished teasing its SEMA creations. First we got a sliver of rear quarter on a 1969 Chevrolet Camaro that revealed a bundle of carbon fiber and SEMA-obligatory deep-dish wheels. The Wisconsin tuner's now announced its litter of cars headed to the show and a few specs, along with two shadowy drawings. The Camaro, christened with the name Valkyrja and a two-tone paint job, gets stretched in two directions with severe fender flares to widen the body and an extended wheelbase. We're not sure what's happening with the Camaro's snout in the drawing, but under that bulging hood we'll find a 416-cubic-inch LS V8 from Wegner Motorsports. Wegner built the 416-cu-in supercharged LS3 V8 that powered Ringbrothers' 1,000-hp G-Code Camaro in 2016.  The second member of the gang is a 1969 Ford Mustang Mach 1 dubbed Unkl. The exterior begs for attention with a deep blue sea paint job, deep front chin spoiler, bulging hood, yellow brake calipers, and what looks like a racing number inside a roundel on the doors. Unkl gets its motivation from a 520-cu-in Boss V8 built by Kaase Racing Engines, rumored to throw about 800 hp.    Finally, Ringbrothers is bringing its Cadillac Madam V for another Las Vegas go-round after giving the custom coupe some updates. The Madam V is a 1948 Cadillac Series 62 fastback coupe body placed atop an ATS-V chassis, first shown in 2016. The firm didn't elaborate on the changes, so all we can expect for now are the coupe's postwar good looks mixed with new-millennium engineering, and a 3.6-liter twin-turbo V6 with 464 hp under that exceptionally long hood.    For any in attendance at the show, the Valkyrja Camaro debuts at the BASF booth on Tuesday, Nov. 5, 2019 at 9:30 a.m., the Unkl Mustang gets revealed a couple hours later at the Flowmaster/Holley booth, and the Madam V Cadillac will be on display throughout the show at the Ringbrothers booth.