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GM's latest production delays: Colorado/Canyon, Cadillac CT4/CT5, Camaro

DETROIT — General Motors Co extended production cuts in North America on Wednesday due to a worldwide semiconductor chip shortage that has impacted the auto sector. The U.S. automaker said its Wentzville, Missouri, assembly plant would be idled during the weeks beginning March 29 and April 5. It will extend down time at its plant in Lansing, Michigan, which has been idled since March 15, by two weeks. The action was factored into GM's prior forecast that it could shave up to $2 billion off this year's profit, spokesman David Barnas said. GM did not disclose how much volume would be lost by the move, but said it intended to make up as much lost production as possible later in the year. The chip shortage came as North American auto plants were shut for two months during the COVID-19 pandemic last year and chip orders were canceled, and as demand surged from the consumer electronics industry as people worked from home and played video games. That's now left carmakers competing for chips. Semiconductors are used extensively in cars, including to monitor engine performance, manage functions for everything from steering to automatic windows, and in sensors used in parking and entertainment systems. Vehicles affected by the GM production cuts include the mid-sized pickup trucks, the Chevrolet Colorado and GMC Canyon in Missouri, and the Cadillac CT4 and CT5 and Chevy Camaro cars in Michigan. Meanwhile, GM said its San Luis Potosi, Mexico, assembly plant, idled since Feb. 8, will resume production with two shifts beginning the week of April 5. Last week, GM said it was building certain 2021 light-duty full-size pickups without a fuel management module, hurting their fuel economy performance by one mile per gallon. Exacerbating the shortage is a recent fire at a Renesas Electronics chip plant in Japan. Barnas said GM was assessing the impact of the fire.  

Cadillac launching crossover-heavy product offensive

Utilizing information provided by Cadillac suppliers, Reuters says that Cadillac is preparing two more crossovers that will bow after its current product initiative is complete. According to the report, a year after the next SRX arrives in 2016, a pair of CUVs will be unveiled that will bracket it in size, and they'll be headed for the US and Chinese markets.
That is years away, though. For now, the company's attentions are on the nearly here CTS and ELR range-extended coupe, the next Escalade SUV (shown above), an ATS coupe, and the range-topper that will sit above the XTS. That, and possibly an even more impressive range-topper that promises to be the mean and majestic super-luxe unicorn Cadillac we've been dreaming about for more than a decade now.
In response to the issue of how German crossovers might be having an impact on Cadillac's future plans, a company source said - rightly, we think - "we don't need to duplicate the Germans." That doesn't mean, however, that it can't wade deeper into a market segment that the Germans are making a ton of money in. In fact, and since everyone is doing it, we'd be surprised if Cadillac didn't, even if it won't happen for another four years.

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.