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Chevy Sail 3 lands in China

Shanghai General Motors took 32 cars to this year's Guangzhou Motor Show, with its Chevrolet Sail 3 leading the way. After putting almost 1.4 million of them into Chinese hands, the third generation of the Bowtie's entry-level sedan wants to "take the nameplate and the segment to a new level." Its new architecture sporting a 1.4-inch longer wheelbase supports a growth spurt of two inches in length and 1.8 inches in width. The exterior also gets "eagle eye-shaped" headlights and "dual-c-element taillights." Under the hood will be either a 1.5-liter DVVT or a 1.3-liter VVT, each of them more powerful and more frugal than previous offerings. Both can be paired with a manual or an automatic transmission, and qualify for listing in China's National Energy-Saving and Eco-Friendly Vehicle Catalogue, as well as a 3,000 renminbi rebate ($490 US). You can read more about it in the press release below, and get more info on the Chevrolet Camaro RS Limited Edition, Corvette Stingray Coupe, Buick Regal GS and Excelle XT also introduced at the show. Chevrolet, Buick and Cadillac Take Center Stage at Guangzhou Auto Show - New Chevrolet Sail 3, Camaro RS Limited Edition and Corvette Stingray Coupe make China debut - Buick showcases customized Regal GS and Excelle XT - Shanghai GM announces new telematics strategy featured in upcoming Cadillac product GUANGZHOU, 2014-11-20 – Shanghai GM is displaying 32 vehicles from the Chevrolet, Buick and Cadillac brands at the 12th Guangzhou International Auto Show, which begins today and runs through November 29 in Guangzhou. Among the products that are making their China debut are the third-generation Chevrolet Sail 3, Chevrolet Camaro RS Limited Edition and Chevrolet Corvette Stingray Coupe. In addition, Buick is showcasing a customized Regal GS and Excelle XT, and Shanghai GM is announcing its new telematics strategy that will be featured in an upcoming Cadillac product next year. Chevrolet Sail 3 Entry-Level Family Car Since its introduction 15 years ago, the Sail has been a driving force in the entry-level family car segment. Nearly 1.4 million Sails have been sold across China. The third-generation Chevrolet Sail, named the Sail 3, will take the nameplate and the segment to a new level when it goes on sale nationwide by the end of this year. Built on Shanghai GM's new-generation small car architecture, the Sail 3 has adopted Chevrolet's new design language. It has a sculpted yet slim exterior with a youthful, dynamic feel.

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.

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs