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GM to idle car production at five factories as Americans continue CUV love affair

In case you needed another reminder that Americans have fallen out of love with sedans, General Motors today announced plans to idle five factories in January in a bid to cut its inventory to 70 days. Detroit-Hamtramck Assembly ( Buick LaCrosse, Cadillac CT6, Chevrolet Volt and Impala) and Fairfax Assembly in Kansas ( Chevy Malibu) will stop production for three weeks. Lansing Grand River ( Cadillac ATS and CTS, and Chevy Camaro) is going down for two weeks, while Lordstown, OH ( Chevy Cruze) and Bowling Green, KY ( Chevy Corvette) will go idle for a week each, Automotive News reports. GM's shutdown reflects a broader problem with the company's supply – at 847,000 vehicles, the company's supply increased unsteadily from a low of 629,000 units in January of 2016. That's more than a 25 percent increase in the past year. Citing information from Autodata, The Detroit News reports that at the end of November, GM had a 168-day supply of LaCrosses, 177 days' worth of Camaro, 170 days of Corvette, 121 days for Cruze, 119 days for ATS, 132 days for CTS, and 110 days of CT6. Meanwhile, inventory of the company's more popular vehicles is actually below the professionally accepted 60- to 70-day supply, The News reports. The Trax, Colorado pickup, and GM's full-size SUVs are sitting below 50 days and experiencing year-over-year sales increases. GM needs a rethink of its inventory levels, which is something that's apparently coming. "We're going to be responsible in managing our inventory levels," GM spokesman Jim Cain told The News. Another unnamed spokesman told Automotive News the company's day-to-day supplies would "fluctuate before moderating at year-end." But at least one analyst thinks this won't be the last time Detroit needs to stop production to level things out. "Incentives are elevated, residuals are declining, and rates are rising," Brian Johnson, an analyst with Barclays, told The News. "And while GM in particular may benefit in the months ahead from new product launches, it's important to recognize that GM's inventory is elevated at the moment, and it wouldn't surprise us if they need to announce another production cut – which could pressure the stock." Related Video: News Source: The Detroit News, Automotive News - sub. req.Image Credit: Paul Sancya / AP Plants/Manufacturing Buick Cadillac Chevrolet GM GMC Crossover SUV Sedan bowling green cadillac xt6 fairfax

GMC confirms Hummer EV will be joined by an electric Sierra, or Sierra-like, pickup

GMC will step into the electric vehicle arena for the first time when it begins building the Hummer EV in 2021. While it's not planning on becoming an electric-only brand, it has more battery-powered models in the pipeline. "There will be an all-electric Sierra pickup, but no timeline yet. But, the plan is to make it electric; this whole electric thing is a moving target," Lynn Thompson, the president of a Buick-GMC-Cadillac dealership in Missouri, told the Detroit Free Press. He said executives revealed those plans during a national dealer meeting. What remains to be seen is whether the truck will be an electric variant of the Sierra as Thompson said, or if it will arrive as a standalone electric truck with Sierra-like dimensions and capabilities. Sister company Chevrolet is also planning to launch an electric pickup in the coming years, and it strongly hinted it will take the second route. Its entry into the segment won't look like a Silverado, and nothing seriously suggests it will be badged as one. It will also be interesting to watch how GMC ensures that the truck doesn't overlap with the Hummer EV, which will exclusively be offered as a four-door pickup with a relatively short cargo box when it arrives in stores as a 2022 model. Our crystal ball tells us the Hummer will be marketed as a more expensive model aimed at weekend adventurers who want to make a statement, while the Sierra-like model will be cheaper and primarily aimed at buyers who merely want a truck, whether they're commuters, contractors, or fleet operators. Chevrolet's entry into the segment will slot beneath these two models. General Motors used this strategy nearly 20 years ago to keep the Hummer H2, the GMC Yukon, and the Chevrolet Tahoe in separate corners of the same room. GMC's electric truck could share powertrain and chassis components with the Hummer EV. It might also be built in the same Hamtramck, Michigan, factory that parent company General Motors is funneling $2.2 billion into. Regardless of the path it takes, GMC is not going all-electric. "[GMC boss] Duncan [Aldred] said we're certainly not going to abandon our internal combustion engine vehicles because that's our core business, and that was good to hear. It's to let people know they're not going down the same road as Cadillac," a dealer who asked to remain anonymous said. Cadillac might go EV-only by 2025, starting with a crossover named Lyriq, and many of its dealers have refused to spend $200,000 on upgrades.

2023 J.D. Power APEAL Study shows new-car customer satisfaction scores slip

J.D. Power survey results have been slightly up but mostly down for automakers this year, literally. In February, the 2023 Vehicle Dependability Study showed an overall decline compared the 2022 a month before the Customer Service Index Study did the same. The trend reversed in June with a better overall score on the 2023 U.S. Electric Vehicle Consideration Study than in 2022, then declined again the same month on with a lower overall score on the 2023 Initial Quality Study. The declines continue with the 2023 J.D. Power U.S. Automotive Performance, Execution and Layout (APEAL) Study, overall satisfaction among the 84,555 respondents down two points overall compared to 2022, to 845 out of 1,000 points. Because last year's score dropped compared to 2021, this year marks the first consecutive decline in the study's 28-year history. The study tries to "[measure] owners' emotional attachment and level of excitement with new vehicle" after 90 days of ownership by asking new owners to rate 37 attributes in 10 areas around the vehicle, such as the feeling they get when they hit the accelerator. Satisfaction with nine of the attributes is down this year versus last, fuel economy the only segment to show better results with 15 points more satisfaction. Styling and infotainment are big drags on satisfaction. Responses to new car exterior looks tallied 888 points, down from 894 last year, the largest drop in this year's study. On the digital side, less than half of those surveyed this year said they prefer using a manufacturer's built-in infotainment. From 70% of respondents in 2020 preferring to use a manufacturer's in-house software to play audio instead of Android Auto or Apple CarPlay, that's 56% in 2023. Going all-in on Google appears to have the best effect. J.D. Power said that vehicles with both Google's Android Automotive Operating System (AAOS) and Google Automotive Services (GAS) "score higher in the infotainment category than those with no AAOS whatsoever. AAOS without GAS receives the lowest scores for infotainment of the three categories."  Frank Hanley, senior director of auto benchmarking at J.D. Power, said, "Despite the technology and design innovations that manufacturers put into new vehicles, owners are lukewarm about them. While innovations like charging pads, vehicle apps and advanced audio features should enhance an owner’s experience, this is not the case when problems are experienced.