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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).

GM trucks get hybrid versions, but you'll probably never see one

A few years ago, General Motors sold hybrid versions of its Chevy Silverado and GMC Sierra pickups. They weren't very good, using GM's old two-mode hybrid system that resulted in only negligible fuel economy gains. But GM's trying again, launching eAssist models of the 2016 Silverado and Sierra that are said to offer 2-mpg improvements in city, highway, and combined fuel economy ratings. Problem is, you probably won't be able to get one. Only 700 eAssist trucks will be made for the 2016 model year – 500 Silverados and 200 Sierras. When you consider that GM moved 824,683 examples of its light-duty pickups in 2015, this small run represents 0.08-percent of all Silverado/Sierra production, and GM says it "will monitor the market closely ... and adjust as appropriate moving forward." But that's not the only limitation. The eAssist trucks will only be sold through California dealers. For the Silverado, eAssist can only be optioned on the 1500 Crew Cab 1LT 2WD model, and for the Sierra, the fuel-saving technology is solely available on the 1500 SLT Crew Cab 2WD model with the SLT Premium Plus package. Granted, in terms of the Sierra, that means you get niceties like LED headlights and taillights, Apple CarPlay and Android Auto, Bose premium audio, heated seats and steering wheel, lane keep assist, and more. In the trucks, eAssist combines a small electric motor and 0.45-kWh battery pack with the pickups' 5.3-liter V8. GM estimates total output of 355 horsepower and 383 pound-feet of torque – no more horsepower than the non-eAssist trucks, but three more pound-feet of torque. GM says the eAssist trucks can tow up to 9,400 pounds, and the battery only adds 100 pounds to the trucks' weight. The electric motor provides 13 hp and 44 lb-ft of torque for a boost of acceleration off the line, or during passing. It also allows the engine to run in four-cylinder mode for longer periods of time. eAssist uses regenerative braking to help power onboard electrical systems, and adds start/stop to the powertrain. Finally, the so-equipped trucks have a six-percent improvement in aerodynamics, thanks to a soft tonneau cover and active grille shutters in the front fascia. Great news is, the eAssist option is relatively inexpensive, only costing $500. But good luck getting your hands on one.

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