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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.

Chevy says not to look at the 2019 Silverado's fuel economy rating

The 2019 Chevy Silverado is hitting dealerships soon, and one of the most notable changes for the new full-size pickup is the addition of a 2.7-liter turbocharged inline-four. The engine replaces the naturally-aspirated 4.3-liter V6 in volume consumer models like the Silverado LT and promises more power, less weight and — most importantly — better fuel economy. The thing is, the gains in efficiency haven't been as dramatic as some might have hoped, especially when stacked up against competitors from Ford and Ram. As Automotive News reports, GM's response is a little murky. First, let's talk numbers. We're pulling all figures from FuelEconomy.gov, the official U.S. government source for fuel ratings. Fuel economy numbers on trucks vary greatly based on a number of factors. Bed and cab configuration play a part, but so does a four-wheel-drive system. You also have to factor in tires, transmissions, rear-axle gearing, hybrid systems and cylinder deactivation. Things like that can make the difference between best- and worst-in-class. The EPA's website doesn't give enough information a lot of the time, so there's really no easy way to compare apples-to-apples. First, take a look at the ratings for the 2019 Silverado. A 2.7-liter model with two-wheel drive is rated 20 city, 23 highway and 21 combined. That's both better and worse than a two-wheel drive 2018 Silverado with the 4.3-liter V6 (18 city, 24 highway and 20 combined). The updated 2019 Silverado with a 4.3-liter V6 has yet to be rated. With less weight and a smaller engine, many hoped Chevy would make bigger gains. It's unusual to see any decrease in a fuel economy metric these days. GM says that it's not done tuning the new 2.7-liter engine, so fuel economy could theoretically increase. Expanding further, a V8-powered 2019 Silverado (17 city, 24 highway and 19 combined) actually gets better highway fuel economy than a turbocharged four-cylinder powered truck in certain configurations, even if the latter has a better overall average. But that's only with two-wheel drive, the 8-speed transmission and cylinder deactivation. A Silverado with the 5.3-liter V8 and a 6-speed automatic is rated at 15 city, 22 highway and 17 combined. The biggest issue with the Silverado 2.7-liter doesn't come from within GM itself but from Ford and Ram. GM cites the Ford F-150 with the 3.3-liter V6 and the Ram 1500 with the 3.6-liter V6 as the closest competitors to its new 2.7-liter inline-four.

GM won't really kill off the Chevy Volt and Cadillac CT6, will it?

General Motors is apparently considering killing off six slow-selling models by 2020, according to Reuters. But is that really likely? The news is mentioned in a story where UAW president Dennis Williams notes that slumping US car sales could threaten jobs at low-volume factories. Still, we're skeptical that GM is really serious about killing those cars. Reuters specifically calls out the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala, Chevrolet Sonic, and the Chevrolet Volt. Most of these have been redesigned or refreshed within the past few model years. Four - the LaCrosse, Impala, CT6, and Volt - are built in the Hamtramck factory in Detroit. That plant has made only 35,000 cars this year - down 32 percent from 2016. A typical GM plant builds 200,000-300,000 vehicles a year. Of all the cars Williams listed, killing the XTS, Impala, and Sonic make the most sense. They're older and don't sell particularly well. On the other hand, axing the other three seems like an odd move. It would leave Buick and Cadillac without flagship sedans, at least until the rumored Cadillac CT8 arrives. The CT6 was a big investment for GM and backing out after just a few years would be a huge loss. It also uses GM's latest and best materials and technology, making us even more skeptical. The Volt is a hugely important car for Chevrolet, and supplementing it with a crossover makes more sense than replacing it with one. Offering one model with a range of powertrain variants like the Hyundai Ioniq and Toyota Prius might be another route GM could take. All six of these vehicles are sedans, Yes, crossover sales are booming, but there's still a huge market for cars. Backing away from these would be essentially giving up sales to competitors from around the globe. The UAW might simply be publicly pushing GM to move crossover production to Hamtramck to avoid closing the plant and laying off workers. Sales of passenger cars are down across both GM and the industry. Consolidating production in other plants and closing Hamtramck rather than having a single facility focus on sedans might make more sense from a business perspective. GM is also trying to reduce its unsold inventory, meaning current production may be slowed or halted while current cars move into customer hands. There's a lot of politics that goes into building a car. GM wants to do what makes the most sense from a business perspective, while the UAW doesn't workers to lose their jobs when a factory closes.