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GM to cut production at 5 plants in North America, kill several models

DETROIT/WASHINGTON — General Motors Co said on Monday it will cut production of slow-selling models and slash its North American workforce in the face of a stagnant market for traditional gas-powered sedans, shifting more investment to electric and autonomous vehicles. The announcement is the biggest restructuring in North America for the U.S. No. 1 carmaker since its bankruptcy a decade ago. GM said it will take pre-tax charges of $3 billion to $3.8 billion to pay for the cutbacks, but expects the actions to improve annual free cash flow by $6 billion by the end of 2020. GM plans to halt production next year at three assembly plants: Lordstown, Ohio, Hamtramck, Michigan, and Oshawa, Ontario. The company also plans to stop building several models now assembled at those plants, including the Chevrolet Cruze, the Cadillac CT6 and the Buick LaCrosse, the sources said. Sources said the Chevrolet Volt, Impala and Cadillac XTS would also be discontinued. Signs of the demise of six passenger-car models have been swirling since July. Plants in Baltimore, Maryland, and Warren, Michigan, that assemble powertrain components have no products assigned to them after 2019 and thus are at risk of closure, the company said. It will also close two factories outside North America, but did not identify those plants. The AP reported that 14,700 jobs would be affected. Some 8,100 of those would be white-collar jobs reduced through buyouts or layoffs. The No. 1 U.S. automaker signaled the latest belt-tightening in late October when it offered buyouts to 50,000 salaried employees in North America. The company also said it will cut executive ranks by 25 per cent to "streamline decision making." Some 6,000 factory workers could lose their jobs or be transferred to other plants. Its shares were last up 6.2 percent at $38.16. Tariff 'headwinds' and cost-cutting GM Chief Executive Officer Mary Barra told reporters on Monday the company can reduce annual capital spending by $1.5 billion and increase investment in electric and autonomous vehicles and connected vehicle technology because it has largely completed investing in new generations of trucks and sport utility vehicles. Some 75 percent of its global sales will come from just five vehicle architectures by early in the 2020s. It plans to reduce annual capital spending to $7 billion by 2020 from an average of $8.5 billion a year during the 2017-2019 period.

GM recalls half-million full-size SUVs to address seatbelt issue

GM is recalling its redesigned full-size SUV models to address improperly riveted mounts securing the third-row seatbelts that may fail in the event of an accident. The population includes the 2021-2022 Cadillac Escalade and Escalade ESV, 2021-2022 Chevrolet Suburban and Tahoe, and 2021-2022 model year GMC Yukon and Yukon XL, for a total of 484,155 vehicles. "Operators at the supplier’s manufacturing plant may have not properly followed manufacturing processes and inadvertently missed the rivet forming operation," GM said in its defect report to NHTSA. "In certain of these vehicles, the rivet that retains the buckle to the mounting bracket in the left or right side third-row seatbelt buckle assembly may not have been properly formed during the manufacturing process. If the third-row seatbelt assembly is not properly riveted, it may not properly restrain occupants in a crash, increasing the risk of injury." Fortunately, the fix is relatively simple. GM service technicians will inspect the rivets on the rear seatbelt buckle assemblies and replace the entire unit if the rivets are not to spec. Dealer notifications have already been distributed; owners should receive notice start in September. Related video: Cadillac Chevrolet GM GMC Ownership Safety SUV

Should Chevrolet continue the SS for another generation?

It is no shocker to say that Chevy kinda messed up with the SS. Now before everyone gets their facts and figures out, lets be real. The SS probably shouldn't have happened in the first place. Chevy hardly promoted the car when it released. It quietly came to our shores (the SS is really a Holden VF Commodore). It was the same with the Pontiac G8 before GM axed the brand. With the G8 however, it got more attention due to the heavy marketing Pontiac did with the car despite the low sales numbers. The SS fills the void of a performance sedan for Chevrolet mainly because there isn't a Impala SS sedan anymore. The SS also shares the same platform with the Chevrolet Caprice PPV, a fleet vehicle only available for your local police station since again the Impala doesn't fill that void any longer. But should the SS continue on in a future life? My answer: No! It was great for Chevy to do this little experiment, and I am sure they learned a lot from releasing the SS and the Caprice as well. But why not take the essence of both of those vehicles and combine them into a new next generation Impala. The Impala SS can return once again in a proper way, and a PPV version of the Impala can go into production. Kinda like what Ford and Dodge did with their performance and police versions of the Taurus and Charger. There really isn't a need to have 2 extra models in the line up when the Impala can fill all 3 voids. With the Holden VF Commodore going out of production in 2017, the Chevrolet SS may not be around much longer. There are rumors that the Commodore will live on in a new global vehicle, so if that is true it could mean the end of the RWD V8 sedans from Australia. But Chevrolet could continue the formula of the SS in the Impala, and it may turn out to be very successful for them. Image Credit: Chevrolet Chevrolet open road