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GM laying off 510 amidst slow Cadillac, small car sales

General Motors is laying off about 510 workers from two factories beginning in January, and it could be months before the automaker needs some of that latent capacity to come back on line. A combination of poor sales and high dealer inventories are prompting the cutbacks, according to Automotive News.
The largest changes come at GM's Lansing Grand River plant, where the Cadillac ATS and CTS are made. An entire shift of about 350 workers is being laid off, but the automaker hopes to find positions for some of them at other nearby factories. The decision leaves just a single shift building vehicles there. According to Automotive News, the move is partially spurred by Johan de Nysschen's plan to make Cadillac a more exclusive brand.
The lost shift will likely return for production of the next-generation Chevrolet Camaro at the plant, according to the report, but GM isn't saying when that will be. A previous announcement from the Canadian Auto Workers union indicated that the Oshawa, Ontario, factory would lose the coupe in late 2015 or early 2016.

GM faces possible class action lawsuit over 8-speed transmission

General Motors has been hit with a class-action lawsuit from owners who allege the eight-speed automatic transmission found in several rear-wheel-drive Chevrolet, Cadillac and GMC models between the 2015 and 2019 model years has a defect that causes the vehicles to hesitate and jerk when accelerating or slowing down. The lawsuit was posted to ClassAction.org and spotted by GM Authority. Problems with GM's Hydra-Matic 8L90 and 8L45 transmissions have been well-documented on Internet forums and via complaints filed with the National Highway Traffic Safety Administration, with many reporting damage to their vehicles. The lawsuit was first filed in December in U.S. District Court for the Southern District of Florida but appears to have been transferred recently to New York. Autoblog sought comment from Theodore Leopold, the lead attorney for the plaintiffs. "These transmissions have a common defect," the complaint reads. "Drivers attempting to accelerate or decelerate their cars feel a hesitation, followed by a significant shake, shudder, jerk, clunk, or 'hard shift' when the vehicle's automatic transmission changes gears." The problem also occurs when the vehicles accelerate in a single gear, without shifting, the plaintiffs allege. "Drivers have reported that the shift is sometimes so violent, they feel as though they have been hit by another vehicle." The problem is believed to center on the transmission, torque converter or both. The complaint says it causes undue friction, causing hydraulic systems and gears to function improperly and sometimes leaves metal shavings throughout the transmission, leading to costly repairs and replacement of parts or the entire transmission. It says GM has known about the problems since shortly after it introduced the transmissions, and has issued 13 technical service bulletins, none of which have resolved the problem. GM declined to comment on the lawsuit. The plaintiffs say GM should have warned consumers about the issues and covered repairs under each vehicle's three-year/36,000-mile bumper-to-bumper warranty. They're seeking statewide classes in at least six states: California, Florida, Illinois, New York, Oklahoma and Texas.

Cadillac will kill the plug-in ELR

Johan de Nysschen, president of General Motors' Cadillac division, says Caddy's ELR extended-range plug-in won't have any future generations, Automotive News (subs. req.) says. The publication previously reported that the car would be around for another couple of years, but even that's questionable, and the model could be yanked even sooner. Cadillac spokesman David Caldwell confirmed that there won't be a second-generation ELR. "Subsequent generations of the car will not be developed," he wrote in an e-mail to Autoblog. "It's available currently as a 2016 model, and there's no change to that status." The model debuted in late 2013 and used a version of the powertrain in the Chevrolet Volt. The main problem, of course, was that the car had a $76,000 price tag that proved too much for most automobile buyers to stomach. Last year, GM sold 1,024 ELRs, down 22 percent from 2014's totals. By comparison, the Chevy Volt moved more than 15,000 units, and that itself was still down 18 percent from year-earlier figures. The merciful end to the ELR shouldn't be much of a surprise, as Cadillac Chief Marketing Officer Uwe Ellinghaus went on the record in December of essentially calling the model a dud. It's a far cry from the excitement, though, that the concept model of what was then called the Converj was unveiled to the public at the Detroit Auto Show in 2009. For those feeling misty-eyed or nostalgic, though, check here for Autoblog's First Drive impressions of the extended-range plug-in. Related Video: Featured Gallery 2014 Cadillac ELR Review View 48 Photos News Source: Automotive News-sub.req. Green Cadillac GM Hybrid elr extended-range plug-in