1965 Buick Skylark Convertible on 2040-cars

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Even if GM does close all 5 of those plants, it'll still have too many

DETROIT — General Motors' monumental announcement on Monday that it will close three car assembly plants and two powertrain plants in North America and slash its workforce will only partially close the gap between capacity and demand for the automaker's sedans, according to a Reuters analysis of industry production and capacity data. Sales of traditional passenger cars in North America have been declining for the past six years and are still withering. After GM ends production next year at factories in Michigan, Ohio and Ontario, it will still have four U.S. passenger-car plants — all operating at less than 50 percent of rated capacity, according to figures supplied by LMC Automotive. In comparison, Detroit-based rivals Ford and Fiat Chrysler Automobiles will have one car plant each in North America after 2019. The Detroit Three are facing rapidly dwindling demand for traditional passenger cars from U.S. consumers, many of whom have shifted to crossovers and trucks. Passenger cars accounted for 48 percent of retail light-vehicle sales in the United States in 2014, according to market researchers at J.D. Power and Associates. This year, sedans will account for less than a third of light vehicle sales. That shift in turn has left most North American car plants operating far below their rated capacities, while many SUV and truck plants are running on overtime. The collapse in passenger-car demand is a challenge for nearly all automakers in the United States, including Japan's Toyota and Honda, which have the top-selling models in the compact and midsize car segments. Toyota executives said last month they are evaluating the company's U.S. model lineup. But Toyota also plans to build compact Corolla sedans at a new $1.6 billion factory it is building in Alabama with partner Mazda. The obstacles facing GM in its plans to close more auto factories became apparent on Tuesday as U.S. President Donald Trump threatened to block payment of government electric vehicle subsidies to GM. While it is not certain that Trump unilaterally has the power to do that, he made it clear he intends to use his office to pressure the company to keep open a small car plant in Ohio that GM says will stop building vehicles in March.

2016 Buick Envision might be your first Chinese-built crossover

At the Detroit Auto Show, the new Envision crossover flips the traditional Buick paridigm on its head. We've been hearing for years about strong sales of the Buick brand in China, but now we'll see if North America is ready for a Chinese-built (but, as GM is very quick to point out, American-engineered) CUV. The Envision rides on the latest version of the Delta 2 platform that underpins many GM vehicles. It'll slot between the tiny Encore and the cavernous Enclave, which is a nice sweet spot for volume sales in the hot crossover market. Gas is cheap, and Americans are eating these vehicles up – in a market like this, does it really matter where the Envision was actually screwed together? The powertrain package is surprisingly compelling – perhaps there will be some life to the driving experience. Motivation is provided by a 252-horsepower turbo inline-four and a six-speed auto, and in a first for a Buick crossover, it'll feature the torque-steer fighting HiPer suspension, which splits up steering and suspension duties in a way that'll tidy up the front axle's manners under power. A few other neat tricks make it into the Envision, like active grille shutters to squeeze some extra efficiency out of the CUV, and available park assist. The 2016 Buick Envision goes on sale later this year. Buick Introduces Envision Luxury Crossover DETROIT – The 2016 Envision is an all-new luxury compact crossover with segment-challenging driving dynamics, advanced technology, connectivity and Buick's trademark interior acoustics. It is a global vehicle, designed from the ground up as a Buick luxury compact crossover. It goes on sale in the U.S. in the second quarter of 2016. "The all-new Buick Envision is a modern, confident and responsive luxury compact crossover that combines the brand's core characteristics with great performance features like our HiPer strut suspension," said Duncan Aldred, vice president of Buick.

GM promises to add 20 EVs and fuel-cell cars to lineup, paid for by SUVs

DETROIT — General Motors outlined plans on Monday to add 20 new battery electric and fuel-cell vehicles to its global product lineup by 2023, financed by robust profits from sales of gasoline-fueled trucks and sport utility vehicles in the United States and China. "General Motors believes in an all-electric future," GM global product development chief Mark Reuss said on Monday during a briefing at the company's suburban Detroit technical center. Future generations of GM electric vehicles "will be profitable," Reuss said, but added it was not clear when GM could make all its new vehicle offerings zero-emission electric cars. Regulators in China and some European countries have floated proposals to ban internal combustion engines by 2030 or 2040. "We will continue to make sure our internal combustion engines will get more and more efficient," Reuss said. GM shares were up more than 4 percent in midday New York trading on positive comments from Rod Lache, auto analyst at Deutsche Bank. Automakers, including electric vehicle market leader Tesla, lose money on electric cars because battery costs are still higher than comparable internal combustion engines. The company offered sneak peeks of three EV prototypes: a Buick SUV, a sporty Cadillac wagon and a futuristic pod car wearing a Bolt badge. GM funds its forays into new technology using a river of cash generated by old-technology vehicles popular with its core customer base in the United States heartland. In comparison, Tesla has burned through an estimated $10 billion in cash and has yet to show a full year profit. GM earned more than 90 percent of its $12.5 billion in pretax profits last year in North America, amid robust demand for its lineup of large sport utility vehicles and pickup trucks. The company's profitable operations in China rely on consumer demand for an expanding lineup of gasoline powered SUVs. GM has previously announced plans to make some of its future electric vehicles capable of driving themselves in robot taxi fleets. The company offered sneak peeks of three electric vehicle prototypes: a Buick brand sport utility vehicle, a sporty Cadillac wagon and a futuristic pod car wearing a Bolt badge. GM collaborated with Korean battery maker LG Chem to build the Bolt battery system. Company officials did not say what companies would supply batteries for the larger fleet of vehicles promised by 2023. Fuel-cell vehicles will also play a role in GM's future, the company said.