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GM and Ford quarterly sales continue to slump in China

BEIJING — General Motors and Ford announced their quarterly sales in China fell, albeit at a slower pace sequentially, as the U.S. automakers were hit by a slowing economy amid the Sino-U.S. trade war. GM's vehicle sales in China for the quarter ended June 30 dropped 12.2%, while Ford's sales slumped by 21.7%. While GM also suffered from heightened competition in its key mid-priced SUV segment, Ford was hurt by the limited new models for customers to choose from. For the first quarter of this year, Ford's sales in China tumbled 35.8 percent while GM's skid 17.5 percent. Still, the numbers from GM, the second biggest international automaker in China by sales, and Ford portend more uncertainty for the industry which is trying to rebound from a downward spiral that led to its first annual sales decline last year in more than two decades. GM delivered 1.57 million vehicles in China in the January-June period this year, while Ford delivered 290,321 vehicles. China's factory activity shrank more than expected in June, highlighting the need for more economic stimulus amid higher U.S. tariffs and weaker domestic demand. Annual car sales in China fell last year for the first time since the 1990s, and they are expected to fall this year too. Sales tumbled 16.4% in May from the same month a year prior, the China Association of Automobile Manufacturers (CAAM) said. That marked the 11th consecutive month of decline and followed falls of 14.6% in April and 5.2% in March. U.S. car companies' share of total China passenger vehicles sales fell to 9.6% in the first five months of this year from 10.9% in the year-ago period, according to CAAM. Over the same period, German car makers' share has risen to 23.3% from 20.9% and Japanese auto makers' to 21.3% from 17.3%. CAAM is set to announce June sales next week, which industry analysts forecast will be negative.   New models In China, GM has a joint venture with SAIC Motor Corp, in which the Buick, Chevrolet and Cadillac are made. It also has another venture, with SAIC and GuangxiAutomobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of GM's affordable brand Baojun dropped 31.8% for the latest quarter. But luxury brand Cadillac's sales jumped 36.6%. GM sold 3.64 million units in China last year, down from 4.04 units in 2017. Ford makes cars in China through its joint venture with Chongqing Changan Automobile Co and Jiangling Motors Corp (JMC).

Canada opens probe into 250,000 GM pickups, SUVs over brake performance

Transport Canada, the auto safety regulator, has opened a probe into braking issues in nearly 250,000 General Motors full-size pickups and SUVs after U.S. officials launched a similar probe last year, the agency said on its website. The U.S. National Highway Traffic Safety Administration (NHTSA) in November into 2.73 million U.S. 2014-2016 model year SUVs and pickups after receiving 487 reports of hard brake pedal effort accompanied by extended stopping distance that were attributed to deterioration of the engine-driven brake assist vacuum pump. Transport Canada's probe covers 249,700 2015 through 2017 model year vehicles including the Cadillac Escalade, Chevrolet Suburban, Chevrolet Tahoe and GMC Yukon as well as 2014-2017 Chevrolet Silverado LD and GMC Sierra LD vehicles. The U.S. agency said it had reports of nine incidents of vehicles incurring damage as a result of colliding with another vehicle or fixed object at low speeds and reports of two injuries. NHTSA said if the pump fails to operate, the amount of brake power assist can be significantly reduced, extending vehicle stopping distance. The NHTSA sent GM an information request in a Feb. 7 letter. A GM spokesman said he had no update on the investigation. Reporting by David Shepardson; editing by Jonathan Oatis

Brief website update hints 2016 Chevy Volt will get 43 mpg, 106 MPGe

Customers in California can already order the 2016 Chevrolet Volt and be the first to own the new, range-extended EV in August. It appears there's now a possibility that buyers of the updated model might get slightly better economy than Chevy's initial announcement from the 2015 Detroit Auto Show in January, too. According to the eagle-eyed folks at GM-Volt.com, Chevy has been subtly tweaking the spec page for the 2016 Volt. It briefly showed the model getting 43 miles per gallon combined fuel economy and 106 mpge, rather than the originally released figures of 41 mpg and 102 mpge. Shortly afterward, the internal-combustion mileage returned to 41 mpg, but 106 mpge remained. A GM spokesperson told Hybrid Cars the changes happened by mistake. "We have not finalized numbers yet. We expect to announce in July." The economy isn't the only statistic to see an adjustment, though. The total range was reportedly briefly shown as 420 miles, and then returned to a 430-mile rating, according to Hybrid Cars. The Volt's output has also been slightly tweaked from the original figures. It's now displayed as 150 horsepower and 293 pound-feet of torque, versus the preliminary numbers of 149 hp and 294 lb-ft. These tiny changes likely have a negligible impact on real-world driving, but they suggest that Chevy's team is still working to squeeze as much as possible from the latest Volt's powertrain. If the final figures are coming in July, then the engineers still have just a few weeks to improve the ratings even more.