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Despite strong profits, GM still fighting flat market share

Looking at the progress General Motors has made since it entered bankruptcy, it's easy to forget that the company still has a long way to go before it's the juggernaut it once was. A recent report from Reuters points out that, while GM is making money, it isn't making any gains in terms of US market share. Quite the opposite, really. Consider this factoid: In 1963, nearly half of the cars sold in the United States were from Chevrolet, Cadillac, Buick, GMC or Pontiac. Now, the company's US market share is stagnant at 17.9 percent. That same number is half of just Chevy's 1963 market share. This is all despite GM going on a binge replacing or updating its models. "Market share increases are not instantaneous," Mark Reuss told Reuters at the 2014 Detroit Auto Show. "We've got a lot of baggage. Don't underestimate what people though of us, or these brands, through these hardships and 30 years." The reasons for the stagnant market share are numerous. Reuters points out that retooling of factories and a focus on limiting incentives are both good things for profit, but not necessarily for market share. There's also the troubling turnover of the brand's marketing department. These issues don't change the fact that Chevrolet has lost 1.4 percent of its market share in two years, and that Cadillac - arguably GM's most improved brand overall - has lost 1.2 percent in the same period. Part of that can be blamed on GM's avoidance of fleet sales in favor of more profitable customer sales. "Our focus has really been on retail and that's where we've got the growth," said Alan Batey, GM's interim global marketing boss. "We want to grow GM and that means growing market share and profits, but it's not at all costs," Reuss said. News Source: ReutersImage Credit: paul bica - Flickr CC 2.0 Earnings/Financials Buick Cadillac GM GMC sales profits

5 reasons why GM is cutting jobs, closing plants in a healthy economy

DETROIT — Even though unemployment is low, the economy is growing and U.S. auto sales are near historic highs, General Motors is cutting thousands of jobs in a major restructuring aimed at generating cash to spend on innovation. It's the new reality for automakers that are faced with the present cost of designing gas-powered cars and trucks that appeal to buyers now while at the same time preparing for a future world of electric and autonomous vehicles. GM announced Monday that it will cut as many as 14,000 workers in North America and put five plants up for possible closure as it abandons many of its car models and restructures to focus more on autonomous and electric vehicles. The reductions could amount to as much as 8 percent of GM's global workforce of 180,000 employees. The cuts mark GM's first major downsizing since shedding thousands of jobs in the Great Recession. The company also said it will stop operating two additional factories outside North America by the end of next year. The move to make GM get leaner before the next downturn likely will be followed by Ford Motor Co., which also has struggled to keep one foot in the present and another in an ambiguous future of new mobility. Ford has been slower to react, but says it will lay off an unspecified number of white-collar workers as it exits much of the car market in favor of trucks and SUVs, some of them powered by batteries. Here's a rundown of the reasons behind the cuts: Coding, not combustion CEO Mary Barra said as cars and trucks become more complex, GM will need more computer coders but fewer engineers who work on internal combustion engines. "The vehicle has become much more software-oriented" with millions of lines of code, she said. "We still need many technical resources in the company." Shedding sedans The restructuring also reflects changing North American auto markets as manufacturers continue to shift away from cars toward SUVs and trucks. In October, almost 65 percent of new vehicles sold in the U.S. were trucks or SUVs. That figure was about 50 percent cars just five years ago. GM is shedding cars largely because it doesn't make money on them, Citi analyst Itay Michaeli wrote in a note to investors. "We estimate sedans operate at a significant loss, hence the need for classic restructuring," he wrote. The reduction includes about 8,000 white-collar employees, or 15 percent of GM's North American white-collar workforce. Some will take buyouts while others will be laid off.

2016 GMC Sierra All Terrain X is cool but no Raptor threat

If you want a brutish off-roader from Ford or Fiat Chrysler Automobiles, you're spoiled for choice. There's the F-150 SVT Raptor, the Jeep Wrangler, and the Ram Rebel and Power Wagon. But since General Motors killed the Hummer brand, it's been without any real competitor to those trucks. The new, special edition GMC Sierra All Terrain X is not going to be that vehicle, but it's close enough to be worth a look. The oft-overlooked Sierra All Terrain's off-road suspension and Eaton locking rear differential give it some real trail credentials. The All Terrain X builds on both with cosmetic and performance upgrades. For most owners, the big draw will be the brawnier 5.3-liter V8. Fitted with a performance exhaust, it should deliver a meatier tone, and according to GMC it bumps output up from 355 to 365 horsepower. The other big performance upgrade comes from the tires, knobby Goodyear Wrangler DuraTrac MT mud-terrain-rated things. The tires and their accompanying 18-inch black aluminum wheels are nice touches. Cool as the All Terrain X might be, it strikes us as an odd strategy for the GMC brand. For one, the trail-ready tires and performance exhaust of the All Terrain X don't seem to fit into the more premium market position that GMC occupies. Moreover, Chevy already has an off-road-oriented pickup in the new Colorado Z71 Trail Boss. Visual upgrades like the black bed-mounted sport bar, LED off-road lights, blacked-out accents, and the 18-inch wheels, the look of the All Terrain X is more in line with the Colorado Trail Boss theme. It's just our two cents, but it seems like attaching the All Terrain X's aesthetic to the Silverado would have been a stronger strategy, and would give Colorado buyers a larger off-road-focused truck to aspire to. You can look for the special edition All Terrain X in GMC dealers this spring, with prices to be announced closer to the on-sale date. Read on for the official press release from GMC. Related Video: GMC Announces Sierra All Terrain X The News GMC today announced the 2016 Sierra All Terrain X – a special edition of the All Terrain model, featuring exclusive premium content that enhances off-road capability and an aggressive, monochromatic appearance. The All Terrain X's powerful attitude reflects a popular personalization trend among off-road enthusiasts, executed with the top-range refinement GMC has cultivated for years with models such as the Sierra Denali.