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GM threatens predatory dealers with order cancellations, non-transferrable warranties

General Motors will launch a second salvo against misbehaving dealerships next week with a new set of policies aimed at curbing predatory markup strategies. With the new Chevrolet Corvette Z06, GMC Hummer EV SUV and Cadillac Escalade-V about to head into production, GM is putting its foot down yet again. Dealers that attempt to circumvent GM's markup restrictions by dealing directly with brokers or other resellers could find themselves in a particularly nasty spot, as the company is threatening to withhold future allocations and end the transferability of warranties when dealers facilitate the reselling of vehicles within 12 months.  While this may help curb some dealership chicanery, it's possible the real loser in such a deal could end up being the customer who unwittingly ends up with an un-warrantied vehicle. We suspect GM has accounted for that, but we'll have to wait until next week to find out exactly how these new policies will be enforced.

AWD turbodiesel Equinox, Terrain dropped for 2020

Citing low demand, General Motors is dropping the AWD diesel options off the Chevrolet Equinox and GMC Terrain roster. Chevrolet spokesman Kevin Kelly confirmed to CarsDirect that for 2020, the diesel versions of these SUVs will only be offered with front-wheel-drive. CarsDirect notes that with the AWD diesel Equinox and Terrain gone, the only AWD diesel option in this class is the Mazda CX-5 Skyactiv diesel, which is significantly more expensive: As the AWD diesel CX-5 is only available in a fully loaded Signature specification, the $42,045 price tag is almost $10k heftier than the cheapest comparable Equinox, the AWD 1.6-liter diesel LT which starts from $32,495. The 2019 GMC Terrain AWD SLE costs $34,795 in comparison, which works out to being around $7,200 cheaper than the Mazda. The higher trim levels for the Equinox and Terrain are Premier and SLT, respectively. Some reasoning behind the AWD diesel GM SUV's low uptake is their own price difference to base FWD gasoline models: you can get a 1.5-liter Equinox for less than §25,000 listed. While the 2.2-liter Mazda has plenty more power at 168 hp and 290 lb-ft, compared to 137hp and 240 lb-ft in the 1.6-liter GM SUVs, the Equinox and Terrain are notably more frugal – they are rated 32mpg combined, while the Mazda can manage 28 mpg. With better fuel economy and a significantly lower list price, the General Motors twins are at least more wallet-friendly when it comes to numbers, and as the vehicles will cease to be built in that configuration there's likely to be some cash on the hood on ones in stock. News Source: CarsDirectImage Credit: Chevrolet Chevrolet GM GMC confirmed gmc terrain chevrolet equinox

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.