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GM plans new car family for global markets, $5B investment

Globalization remains all the rage in the auto industry, as manufacturers scramble to develop single vehicles that can easily be adapted to the world's disparate market places. Ford has been a champion of this movement, with its One Ford mandate, but now, its cross-town rival is getting in on the action, albeit on a smaller scale. General Motors has announced a $5-billion investment to develop a new Chevrolet-badged family vehicle for global growth markets, including Brazil, Mexico, India, and importantly, China. With the PRC listed as a target market for the new vehicle, it's no surprise that GM is teaming with its Chinese joint-venture partner, SAIC Motor, to develop the vehicle's architecture and engines. The first vehicles should be hitting dealers by 2019, with GM expecting to eventually move some two million units per year. "With a significant majority of anticipated automotive industry growth in 2015 to 2030 outside of mature markets, Chevrolet is taking steps to capitalize on that growth," GM President Dan Ammann said in the attached statement. "Strengthening Chevrolet's position through this major investment is consistent with our global strategy to ensure long-term profitable growth in the markets where we operate." GM is quite focused on developing markets for a new vehicle, going as far as to say that "mature markets" like the US aren't currently being considered for the new family vehicle. As for where it will be built, the press release specifically says it won't be exported to the US, meaning it will very likely be built abroad using parts from local suppliers. Read on for the official press release from General Motors. Chevrolet Strengthens Position in Growth Markets with $5 Billion Investment 2015-07-28 All-new vehicle family tailored to local customer requirements General Motors and SAIC Motor partnership further enhanced DETROIT – Chevrolet announced today it is investing $5 billion to strengthen its business in global growth markets through the development of an all-new vehicle family that will meet the rapidly changing demands of customers in these markets. "With a significant majority of anticipated automotive industry growth in 2015 to 2030 outside of mature markets, Chevrolet is taking steps to capitalize on that growth," said General Motors President Dan Ammann.

GM under fire from safety advocates over braking problem caused by recall fix

Safety experts are lambasting General Motors over what they say is the automaker’s slow notification of owners of certain 2019 sedans and trucks that a recall fix could cause power braking to fail and increase the risk of a crash, the Detroit Free Press reports.  GMÂ’s original recall in December targeted about 550,000 Cadillac CT6 sedans and Chevrolet Silverado 1500 and GMC Sierra 1500 pickups, all from the 2019 model year, over potentially defective electronic stability control and antilock brakes. In that case, GM said the errors would not show up as a diagnostic warning on the instrument cluster. But after GM had done recall work on 162,000 vehicles, about 1,700 owner have complained that their power brakes didnÂ’t work after they had the recall done and then used the OnStar app to start their vehicle. GM then issued a supplemental fix for customers whoÂ’d already had their vehicles serviced. In this case, a diagnostic warning should illuminate saying either “Service Brake Assist” or “Service ECS,” which GM says is a signal that a customer should not drive the vehicle and instead call their dealer, which will tow the vehicle and have it repaired. Safety advocates say the automaker hasnÂ’t gone far enough to protect customers. “The fact that you could potentially start a vehicle and not have brakes is a pretty risky proposition,” Sean Kane, president of the Safety Research and Strategies, which works on auto issues for plaintiffs and governmental organizations, told the Freep. “The fact that they wouldnÂ’t notify owners (sooner) is pretty stunning.” GM told the Freep it was required to notify the National Highway Traffic Safety Administration and file paperwork before it notified customers about the original recall, which was made Dec. 12. It then had to investigate and resolve the problem created by its original recall fix before alerting customers. GMÂ’s call center and dealers are contacting the remaining 900 customers who havenÂ’t yet had the update made to the original recall repair. GM also hired a vendor to send recall letters to the 550,000 customers affected by the original recall notifying them about the update. There are no known injuries or deaths related to the problem. Read the Freep story here.

Dodge Challenger outsold Mustang, Camaro in third quarter of 2019

The Dodge Challenger is nearly old enough to start driver's ed in some states, and it doesn't have a firm grasp on the increasingly crucial concept of downsizing, yet it beat the odds to become the most popular American two-door model during the third quarter of 2019. Its ballooning sales figures suggest buyers don't always want the latest, most advanced car they can get their hands on. Dodge sold 18,031 examples of the Challenger during the third quarter of 2019, a shocking 21% increase over the same period in 2018. It's a true muscle car, normally sardined in the same can as the Chevrolet Camaro and the Ford Mustang, a pair of smaller, nimbler two-doors that are much closer to the historic definition of a pony car. Semantics aside, the Mustang finished on the second spot of the sales podium with 16,823 sales, a 12.3% drop compared to the third quarter of 2018, and the Camaro took third with 12,275 sales, a 15% dip that alarmingly comes in the wake of two redesigns. More specific sales figures aren't available. We don't know what percentage of the sales mix V8s represent, or whether buyers prefer manual or automatic transmissions. The scoreboard looks different when we examine 2019's year-to-date figures. The Mustang takes first place with 55,365 sales, followed by the Challenger at 46,699, and the Camaro at 36,791. While the Challenger's recent ascent is encouraging, it can't mask the fact that two-door models no longer enjoy a favorable tailwind, and the entire segment — not just the American entries — is declining. The aforementioned year-to-date figures are down by 10.1, 11, and 7.6 percent, respectively. The third-quarter statistics revealed a handful of other surprises unrelated to the world of performance. Dodge notably sold three examples of the Dart, a sedan it hasn't built since 2016. That's a 93% drop compared to the 45 units that found a home during the third quarter of 2018.