1988 Buick Reatta Coupe on 2040-cars

Auto blog

GM mulling Chevy Cruze hatchback for US, Buick 'Panamera' among other new models

We've spoken at length previously about the fallacy of poor hatchback sales in the US, and with the runaway success of its Chevrolet Cruze sedan, it's somewhat unsurprising to hear that General Motors is rethinking its decision not to sell an overseas five-door variant in North America as it looks to plug a number of holes in its lineup. GM North American President Mark Reuss admitted during a media luncheon this week that not offering the model "... was a pre-bankruptcy planning mistake," says Forbes. With the next-generation model already well-along in development, it's likely that the current Cruze hatch (shown above) won't see US dealers.
Reuss admits not offering the model "was a pre-bankruptcy planning mistake"
In what must have been a far-reaching conversation, Reuss hinted at a number of new products for many GM brands, including "a much more beautiful Panamera" range-topper for Buick (which sounds a bit like the line of reasoning the TriShield brand has been pursuing with its Riviera concepts) and a "Ford Transit Connect-fighter" to supplant the recently announced badge-engineered Chevy City Express from Nissan.

GM seeks national mandate for zero-emissions cars

DETROIT — General Motors says it will ask the federal government for one national gas mileage standard, including a requirement that a percentage of auto companies' sales be zero-emissions vehicles. Mark Reuss, GM's executive vice president of product development, said the company will propose that a certain percentage of nationwide sales be made up of vehicles that run on electricity or hydrogen fuel cells. GM says a nationwide program modeled on such a requirement in California could result in 7 million electric vehicles, or EVs, on U.S. roads by 2030. California wants 15.4 percent of vehicle sales by 2025 to be EVs or other zero emission vehicles. Nine other states, including Maryland, Massachusetts, New Jersey and New York, have adopted those requirements. In January, California Governor Jerry Brown set a target of 5 million zero-emission vehicles in California by 2030. The Trump administration criticizes California's ZEV mandate, saying it requires automakers to spend tens of billions of dollars developing vehicles that most consumers do not want, only to sell them at a loss. Reuss told reporters that governments and industries in Asia and Europe "are working together to enact policies now to hasten the shift to an all-electric future. It's very simple: America has the opportunity to lead in the technologies of the future." A national mandate also would create jobs and reduce fuel consumption, CO2 emissions and "make EVs more affordable," Reuss added. GM, the nation's largest automaker, will spell out the request Friday in written comments on a Trump administration proposal to roll back Obama-era fuel economy and emissions standards, freezing them at 2020 levels instead of gradually making them tougher. Under a regulation finalized by the Environmental Protection Agency at the end of the Obama administration, the fleet of new automobiles would have to get 36 miles per gallon by 2025, 10 mpg higher than the current requirement. But the Trump administration's preferred plan is to freeze the standards starting in 2021. Administration officials say waiving the tougher fuel efficiency requirements would make vehicles more affordable, which would get safer cars into consumer hands more quickly. GM on Thursday said it doesn't support the freeze, but wants flexibility to deal with consumers' shift from cars to less-efficient SUVs and trucks.

Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.