2014 Buick Verano Convenience Group on 2040-cars

Auto blog

GM cutting vehicle trim options to save money for electrification

Information continues to filter out about GM's plans based on comments the automaker made during its Capital Markets Day event in February. GM President Mark Reuss said the company's push to save money by rationalizing the number of build combinations will continue in 2020, carrying on the work done in 2019. As GM Authority covers, last year, the carmaker cut 3,500 components across model lines, a 12% drop in the number of parts it needed to stock in its plants. Reuss used the next-generation Chevolet Equinox and GMC Terrain as examples for more cost efficiencies, saying build possibilities — which include international markets and their options — will be cut by more than 50%, and use more shared parts. "We will reduce total trim levels on Equinox and Terrain from eight to six," Reuss said, "reduce engine variants from 11 to 5, reduce build combinations from more than 200 to less than 100 per program, and see significant cost savings of an already paid-for architecture that took the mass out, helping us self-fund electrification programs." GM will plow a large amount of the money it saves into its ambitious EV program. In 2017, the automaker said it intends to have 20 electric vehicles on the market by the end of 2023, some of which could be shared between brands. An automotive analyst at Seeking Alpha and a piece in Automobile attempted to put specifics to what we should expect. As Automobile points out, the first two EVs in the 20-car program are already on sale, being the Ariv Meld and Ariv Merge eBikes available in Belgium and The Netherlands. We've seen the Cruise Origin autonomous rideshare taxi, although we don't know when it will hit the road. The next three, which we should see in the metal shortly, are two Cadillac EVs and the GMC Hummer EV pickup. The Cadillac pair are expected to be sized like the XT4 and XT5, and along with the Hummer, should hit the market starting in late 2021.

Frustrated GM investors ask what more Mary Barra can do

DETROIT — General Motors Co Chief Executive Mary Barra has transformed the No. 1 U.S. automaker in her almost five years in charge, but that is still not enough to satisfy investors. Ahead of third-quarter results due on Oct. 31, GM shares are trading about 6 percent below the $33 per share price at which they launched in 2010 in a post-bankruptcy initial public offering. The Detroit carmaker's stock is down 22 percent since Barra took over in January 2014. After hitting an all-time high of $46.48 on Oct. 24, 2017, the shares have declined 33 percent. In the same period, the Standard & Poor's 500 index has climbed 7.8 percent. Several shareholders contacted by Reuters said GM could face a third major action by activist shareholders in less than four years if the share price does not improve. "I've been expecting it," said John Levin, chairman of Levin Capital Strategies. "It just seems a tempting morsel to somebody." Levin's firm owns more than seven million GM shares. Barra has guided the company through the settlement of a federal criminal probe of a mishandled safety recall, sold off money-losing European operations, and returned $25 billion to shareholders through dividends and stock buybacks from 2012 through 2017. GM declined to comment for this story, but the company's executives privately express frustration with the market's reluctance to see it as anything more than a manufacturer tied mainly to auto market sales cycles. GM's profitable North American truck and SUV business and its money-making China operations are valued at just $14 billion, excluding the value of GM's stake in its $14.6 billion Cruise automated vehicle business and its cash reserves from its $44 billion market capitalization. The recent slump in the Chinese market, GM's largest, and plateauing U.S. demand are ratcheting up the pressure. GM is one of the few global automakers without a founding family or a government to serve as a bulwark against corporate raiders. In 2015, a group led by investor Harry Wilson pressed GM to launch a $5 billion share buyback, and commit to what is now an $18 billion ceiling on the level of cash the company would hold. In 2017, GM fended off a call by hedge fund manager David Einhorn to split its common stock shares into two classes. Einhorn, whose firm still owned more than 21 million shares at the end of June, declined to comment about GM's stock price. Other investors said there were no clear alternatives to Barra's approach.

Buick Velite 6 MAV is the brand's first all-electric vehicle

Buick is making a big splash at the 2019 Shanghai Motor Show. It just debuted the brand's first all-electric vehicle, dubbed the Velite 6 MAV, which is a production version of the concept we saw a year ago. The vehicle is reportedly built on a new platform GM developed with China's SAIC and will be sold in China. This platform uses a "new-generation pure electric drive system," but it's not based on the new electric vehicle platform GM said is going to underpin new electric cars in the U.S. starting in 2021. Consumers may not want it here anyways. The electric motor makes 114 horsepower and 188 pound-feet of torque. It has a "city" electric driving range of 187 miles, but Buick doesn't quote any numbers as they would pertain to our EPA rating system. That's plenty of range for most folks, but the lack of power would be a tough sell here. Buick calls this thing an MAV, which stands for multi-activity vehicle. It's tough to put a car type on it, because it borrows elements from several different styles. We'll just distill it to a mash-up between a wagon and a crossover, sort of like the Subaru Outback. At least it appears utilitarian. Buick says that it costs about $25,000 after all the Chinese government subsidies for an electric vehicle have been applied. The goal here is to give the Buick-hungry Chinese market an electric option, and this doesn't look half bad. GM is even entering into a car-sharing venture to deploy 5,000 Velite 6s with EVCARD (car sharing company) into strategic areas. Those will reportedly be put into operation on April 28 this year.