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GM and Ford quarterly sales continue to slump in China

BEIJING — General Motors and Ford announced their quarterly sales in China fell, albeit at a slower pace sequentially, as the U.S. automakers were hit by a slowing economy amid the Sino-U.S. trade war. GM's vehicle sales in China for the quarter ended June 30 dropped 12.2%, while Ford's sales slumped by 21.7%. While GM also suffered from heightened competition in its key mid-priced SUV segment, Ford was hurt by the limited new models for customers to choose from. For the first quarter of this year, Ford's sales in China tumbled 35.8 percent while GM's skid 17.5 percent. Still, the numbers from GM, the second biggest international automaker in China by sales, and Ford portend more uncertainty for the industry which is trying to rebound from a downward spiral that led to its first annual sales decline last year in more than two decades. GM delivered 1.57 million vehicles in China in the January-June period this year, while Ford delivered 290,321 vehicles. China's factory activity shrank more than expected in June, highlighting the need for more economic stimulus amid higher U.S. tariffs and weaker domestic demand. Annual car sales in China fell last year for the first time since the 1990s, and they are expected to fall this year too. Sales tumbled 16.4% in May from the same month a year prior, the China Association of Automobile Manufacturers (CAAM) said. That marked the 11th consecutive month of decline and followed falls of 14.6% in April and 5.2% in March. U.S. car companies' share of total China passenger vehicles sales fell to 9.6% in the first five months of this year from 10.9% in the year-ago period, according to CAAM. Over the same period, German car makers' share has risen to 23.3% from 20.9% and Japanese auto makers' to 21.3% from 17.3%. CAAM is set to announce June sales next week, which industry analysts forecast will be negative.   New models In China, GM has a joint venture with SAIC Motor Corp, in which the Buick, Chevrolet and Cadillac are made. It also has another venture, with SAIC and GuangxiAutomobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of GM's affordable brand Baojun dropped 31.8% for the latest quarter. But luxury brand Cadillac's sales jumped 36.6%. GM sold 3.64 million units in China last year, down from 4.04 units in 2017. Ford makes cars in China through its joint venture with Chongqing Changan Automobile Co and Jiangling Motors Corp (JMC).

As GM readies Alexa convenience for vehicles, we ponder its dark side

SEATTLE — On the 30th floor of AmazonÂ’s glass tower, in a room with a breathtaking view of downtown Seattle, thereÂ’s a beautiful bed that nobody sleeps in. ItÂ’s near a kitchen nobody cooks in, a living room couch that no one crashes on, a kitchen table that doesnÂ’t host any family meetings. ItÂ’s AmazonÂ’s Smart Home Lab, a place where every Alexa-enabled gizmo the company or its partners can produce is crammed into the same space, ostensibly for Amazon to test. The company invited us there to show us the companyÂ’s vision for consumer products to leverage AlexaÂ’s voice interaction software before taking us down to a demo of its latest implementation in a Buick Encore GX. In this eerie simulacrum of a fantastic luxury apartment, however, nothing went right the first time. ItÂ’s a challenging environment for Alexa to work correctly, our hosts noted, pointing to the fact that there were six wifi networks available for the devices to connect to. In a normal home, one wifi network controls all the devices, who can theoretically sort out for themselves which one youÂ’re actually trying to activate. In the Smart Home Lab, any unmuted Alexa device thinks itÂ’s in charge. Even so, the connected toaster wouldnÂ’t connect. The Fire TV Cube wouldnÂ’t play a song. Our handlers futzed with everything, muting and unmuting devices, repeating commands, making us feel better about our own struggles with similar technologies. If it doesnÂ’t work right at Amazon HQ, maybe itÂ’s not just us! ItÂ’s telling that down on the faux lawn, in between the gleaming Amazon spheres that host a billionaireÂ’s tropical garden and the Day 1 building that the Smart Home Lab resides in, the BuickÂ’s Alexa implementation doesnÂ’t use a “wake-word” at all. The familiar Push to Talk button on the steering wheel, which normally activates General MotorÂ’s own proprietary voice command system, can be set to default to Alexa when that rolls out to GM vehicles in the first half of 2020 via an over-the-air (OTA) update. Given the reluctance of Alexa to respond to its wake-word in the comfort of AmazonÂ’s own lab, we hoped that this was by design. Drivers are already familiar with Push to Talk, and a physical button is more reliable than the vagaries of contemporary voice recognition – not to mention the privacy and accuracy issues involved with always-on mics. Our experience with the not-ready-for-primetime Mercedes-Benz MBUX system is illustrative.

GM announces 3 new recalls affecting 1.7M vehicles in North America [w/video]

Still embroiled in the ongoing ignition switch recall, General Motors announced today three more discrete recalls, affecting a grand total of 1,546,900 vehicles in the US. The Detroit News reports that some 1.7 million vehicles are affected overall in North America. The first and largest of the trio of new recalls concerns some 1.18-million Buick Enclave and GMC Acadia crossovers from the 2008-2013 model years, Chevrolet Traverse from 2009-2013 (pictured above) and Saturn Outlook vehicles from 2008-2010. All of the crossover utilities may have an issue with the wiring harness for their seat-mounted side airbags. Apparently, the vehicles are equipped with a Service Air Bag warning light that, if ignored, "will eventually result in the non-deployment of the side impact restraints." Those restraints include the side airbags, a front-center airbag if the vehicle is so equipped and seatbelt pretensioners. Dealers of affected vehicles will be instructed to remove driver and passenger side airbag wiring harness connectors, and then "splice and solder the wires together." The second recall affects 303,000 Chevrolet Express (pictured right) and GMC Savana vans from model years 2009-2014, and with gross vehicle weights under 10,000 pounds. Said vehicles do not comply with a head impact requirement for unrestrained occupants, and will need a reworking of the instrument panel material to be sent back on the road. It doesn't sound as though there's a quick fix for this one, as the GM press release states: "Unsold vehicles have been placed on a stop delivery until development of the solution has been completed and parts are available." Finally, the third recall affects 63,900 Cadillac XTS luxury sedans from model years 2013 and 2014. A brake booster pump may be susceptible to corrosion by way of the relay, potentially causing and electrical short, overheating, melting of plastic components and even engine fires. GM says it is aware of two engine fires in unsold XTS models and two cases of melted parts. Repairs for the issues affecting the XTS have not not mentioned by GM in the release. The Detroit News is also reporting that along with news of the triple-recall, GM is taking a $300-million credit to help pay for the repair costs, and to deal with the ongoing costs associated with the ignition switch recall. In an attempt to explain just what GM has been doing in the face of these very serious issues, newly minted CEO Mary Barra has addressed the issues in a new video.