1968 Buick Riviera Base Hardtop 2-door 7.0l on 2040-cars

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GM program sees dealers taking on way more loaner cars

Given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. Bring your car into the dealership for service, and you may need a loaner car in exchange. And with so many recalls being carried out, that means a lot of loaners – especially at General Motors dealerships. That could be one of the reasons why GM is massively expanding its loaner fleet program. While many Chevrolet and Buick-GMC dealerships have an on-site rental car location operated by a third party like Enterprise (which may or may not provide a GM vehicle), others manage their own loaner fleets. But while the range of dealerships operating such fleets was once small, reports Automotive News, the number has been growing rapidly: from the locations responsible for only 20 percent of those brands' sales two years ago to about 90 percent today. The impetus for that growth comes down to a massive expansion of GM's Courtesy Transportation Program. The initiative encourages dealers to ramp up their loaner fleet to a maximum size determined by GM, with a mix determined by the dealer itself, so that a showroom in Texas can be bolstered with a fleet of pickup trucks and a dealer in California can employ more Volt and Camaro Convertible loaners. The dealership gets a $500 credit for each vehicle its puts in its fleet, and can use those vehicles as loaners for service customers, as multi-day test drivers or to rent out separately. The vehicles remain in the dealer's fleet for 90 days or 7,500 miles, then they can be sold as used, but with new-car incentives. The dealer gets a fleet of loaners, customers get to use the loaners, try out a new car overnight or buy a barely used car with attractive incentives, and GM gets to clock more sales. But therein lies the kicker: the automaker counts the dispatch of the loaner new vehicle to the dealership as a new-car sale, which could end up distorting its sales figures. Counting loaner vehicles as sold vehicles is something of an industry-standard practice, but given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. One dealership - Paddock Chevrolet in Kenmore, NY, for example - had no loaner fleet two years ago, but now runs a fleet of 50 vehicles. Multiply that by the 4,000 or so dealers GM has across America and you're talking about the potential for hundreds of thousands of these sorts of sales.

GM laying off more than 4,000 workers Monday morning

According to reports from Automotive News, The Detroit News, and CNN, General Motors plans to begin laying off more than 4,000 salaried workers starting Monday morning. In a statement to AN, a spokesperson for the automaker said, "We are not confirming timing. Our employees are our priority. We will communicate with them first." We've been expecting layoffs at General Motors since November, 2018. At the time, the Detroit-based automaker announced it would seek to shed 8,100 salaried employees, shut down five assembly plants in North America, and kill off several slow-selling models. One month earlier, GM offered buyout packages to 18,000 workers and said it would seek to cut its global workforce by 25 percent. A spokesperson said at the time the moves were "proactive steps to get ahead of the curve by accelerating our efforts to address overall business performance." The cost-cutting moves are expected to save GM up to $2.5 billion in 2019 and as much as $6 billion by 2020. David Kudla, CEO and chief investment strategist of Mainstay Capital Management, referred to the impending culling as "Black Monday" and told The Detroit News that the layoffs would begin around 7:30 a.m. and continue in waves throughout the coming days and weeks. GM plans to deliver on its fourth-quarter and full-year 2018 earnings report on Wednesday. President Donald Trump plans to deliver the annual State of the Union address a day earlier on Tuesday. We expect to hear plenty more from both sides over the next several days.

Buick Envision arrives in US next year

In a detailed piece on what General Motors has planned for the Buick brand stateside, Automotive News reports that the Envision will finally come to the US a little more than a year from now, in the latter half of 2016. The size gap between the small Encore and the large Enclave is a perfect fit for the Chevrolet Equinox-sized Envision. Assuming this actually happens, it should excite both customers and Buick dealers. In China, the Envision uses a 2.0-liter turbocharged four-cylinder with 256 horsepower and 260 pound-feet of torque, mated to a six-speed transmission. Before then, dealers sales forces will be preparing for the Cascada convertible, expected in Q1 next year. Later in 2016, around the same time as the Envision gets here, we can expect a redesigned Verano sedan. AN says it "should grow in length and interior roominess, similar to the Chevy Cruze," but the Verano already roughly matches or exceeds many Cruze dimensions. The Chinese-market Verano that premiered at the Shanghai Motor Show earlier this year probably holds some clues to what we'll see, but our version might not be an exact copy. A redesigned, lighter, and slightly larger LaCrosse will be right there with it. In 2017 the redesigned Regal appears. Following the trend, it also gets larger, but that's required because it needs to be more distinct from that larger Verano. AN suggests a new base engine will go in the Regal, perhaps something as small as the 1.5-liter turbo being lined up for the 2016 Chevy Malibu. At the other end, executives are said to be considering importing the diesel Opel Insignia wagon for the Regal lineup. If they bring the manual over, auto scribes will probably take the day off when the first one arrives, and make it an industry holiday.