2014 Chevrolet Silverado 1500 Lt Extended Cab Pickup 4x4 4-door 5.3l on 2040-cars

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GM profits threatened by glut of pickups

Automotive News reports that General Motors may slash production or ramp up discounts in order to deal with an oversupply of pickup trucks. GM currently has more than double the standard supply of pickups, and the vehicles are threatening to dampen the automaker's profits for 2013. Typically, automakers try to sustain a 60- to 75-day supply of vehicles, but GM is currently loaded with a 139-day supply, as of last month. At the end of November, the automaker was sitting on 245,853 units.
The manufacturer says that it will adjust production accordingly before laying any incentives on the profitable pickups. Even so, there's some concern that the inventory swell could hurt the roll-out of the next-generation Chevrolet Silverado and GMC Sierra. GM actually began slowly stepping back production in August, but it's clear the company will take further action as it heads toward the end of the year and into the next. Analysts predict the automaker could reduce pickup manufacturing by nearly half in the first quarter of 2013.
That still may not be enough to keep GM from laying extra cash on the Silverado and GMC Sierra. While the company's incentive spending was down in November compared to the same month in 2011, both the Ram 1500 and Ford F-150 saw double-digit percentage increases in sales last month while the Silverado and Sierra numbers slid compared to a year prior. Incentive spending could help move more trucks and add some balance to the GM inventory surge.

400,000 Chevy, GMC pickups recalled: Side airbags can explode

DETROIT — General Motors is recalling more than 400,000 pickup trucks in the U.S. because the side airbags can explode without warning and spew parts into the cabin. The recall covers certain 2015 and 2016 Chevrolet Silverado and GMC Sierra 1500, 2500, and 3500 trucks. Documents posted Friday by U.S. safety regulators say the airbag inflator can rupture or the end cap can fly off on both sides of the trucks. Documents say three inflators ruptured in 2015 Silverados last month, one in Florida and two in Texas. All three trucks were unoccupied at the time, and GM says it has no reports of injuries. Dealers will replace both side airbag modules. The company says it has a limited number of replacement parts available. Owners will be notified starting Aug. 16 and they'll get a second letter when parts are widely available. About 9,000 of the trucks were recalled last year for the same problem. The company says a manufacturing defect allowed moisture into the inflator while it was being manufactured, causing corrosion. The inflators were made in Mexico by Joyson Safety Systems, the company that took over Takata. Back in April, Silverado and Sierra were among nearly 750,000 GM vehicles in a National Highway Traffic Safety Administration (NHTSA) investigation into non-deploying driver-side airbags. That investigation is ongoing. Takata is responsible for the largest recalls in automotive history, covering about 100 million inflators among 19 major automakers worldwide, including about 67 million inflators in the United States. Nineteen deaths in the U.S. have been attributed to Takata inflators. Only about 50 million of the 67 million recalled inflators in the U.S. have been repaired. This latest recall is a good reminder to go to NHTSA's recalls website and enter your car's VIN. Millions of recalled vehicles still pose a danger to their owners. Yours could be one of them.   Recalls Chevrolet GM GMC airbag Takata airbag recall

Even if GM does close all 5 of those plants, it'll still have too many

DETROIT — General Motors' monumental announcement on Monday that it will close three car assembly plants and two powertrain plants in North America and slash its workforce will only partially close the gap between capacity and demand for the automaker's sedans, according to a Reuters analysis of industry production and capacity data. Sales of traditional passenger cars in North America have been declining for the past six years and are still withering. After GM ends production next year at factories in Michigan, Ohio and Ontario, it will still have four U.S. passenger-car plants — all operating at less than 50 percent of rated capacity, according to figures supplied by LMC Automotive. In comparison, Detroit-based rivals Ford and Fiat Chrysler Automobiles will have one car plant each in North America after 2019. The Detroit Three are facing rapidly dwindling demand for traditional passenger cars from U.S. consumers, many of whom have shifted to crossovers and trucks. Passenger cars accounted for 48 percent of retail light-vehicle sales in the United States in 2014, according to market researchers at J.D. Power and Associates. This year, sedans will account for less than a third of light vehicle sales. That shift in turn has left most North American car plants operating far below their rated capacities, while many SUV and truck plants are running on overtime. The collapse in passenger-car demand is a challenge for nearly all automakers in the United States, including Japan's Toyota and Honda, which have the top-selling models in the compact and midsize car segments. Toyota executives said last month they are evaluating the company's U.S. model lineup. But Toyota also plans to build compact Corolla sedans at a new $1.6 billion factory it is building in Alabama with partner Mazda. The obstacles facing GM in its plans to close more auto factories became apparent on Tuesday as U.S. President Donald Trump threatened to block payment of government electric vehicle subsidies to GM. While it is not certain that Trump unilaterally has the power to do that, he made it clear he intends to use his office to pressure the company to keep open a small car plant in Ohio that GM says will stop building vehicles in March.