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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.

Cadillac president Johan de Nysschen expands on brand's future

Cadillac president Johan de Nysschen chatted with journalists at a recent roundtable, expounding on everything from domestic racing to Chinese manufacturing. The brand's been doing a slow burn on rolling out new products and increasing sales, but admittedly, there was a lot of work to do. After closing out last year 0.8 percent down in the U.S., the domestic luxury brand is more than 5 percent up so far this year, thanks to healthy double-digit bumps for the ATS and Escalade, and increased fleet sales. Globally, the brand's doing 21 percent better. The XT5 still outsells everything, though. Asked about slow sedan sales, de Nysschen cited a few reasons, one of them "energy prices," which are low enough to fuel the crossover craze. You can also read that as another admission that Cadillac doesn't have enough crossovers to please the crowds, a fact the XT4 will soon address. Yet de Nysschen also pegged the sedan malaise on "younger consumers who really are less tuned into dynamics and handling and all of those things that used to excite enthusiasts. It's more about the way cars complement and enable their lifestyle now." He topped that with a take on U.S. roads, saying, "I also have to say it may also be influenced a little bit by the decay of America's infrastructure. When roads no longer support high-performance sport sedans and ultra-low-profile rubber, people are going to respond to it." Those latter takes seem wide of the mark. Yes, BMW is the established leader, but the Munich carmaker sold 8,806 3 Series' so far this year in all variants, compared to 2,543 ATS coupes and sedans. Mercedes-Benz has sold 8,366 C-Class models so far in all variants. As for infrastructure, yes, it's a mess, but AMG sales rocketed up nearly 50 percent in the U.S. last year, nearly 10 percent of overall Mercedes sales, and the Three-Pointed Star expects that to rise again this year. People are buying sedans and performance models. They simply aren't buying enough of them with Cadillac badges. Cadillac has no plans to go racing in Europe since the brand doesn't have the kind of presence there to justify the investment. De Nysschen said they'll stick with the Daytona Prototype International formula in the U.S. domestic scene, and continue with the tech transfer from race to road.

GM CEO to meet with U.S. lawmakers over job cuts

WASHINGTON — General Motors Co Chief Executive Mary Barra plans to visit Capitol Hill next week to discuss the company's plans to halt production at five plants in North America next year and cut up to 15,000 jobs, two congressional aides said on Friday. GM has come under harsh criticism from lawmakers from both major political parties, and from President Donald Trump, since Monday when it announced the biggest restructuring for the U.S. No. 1 carmaker since its bankruptcy a decade ago. Barra is expected to meet with lawmakers from Michigan and Ohio, where GM plans to shutter three plants, as well as senior leaders in Congress. GM did not immediately comment. Barra has been calling lawmakers this week to explain the decision to end production. Trump has threatened to revoke subsidies for GM. The Detroit automaker plans to halt production next year at three assembly plants: the Lordstown small-car factory near Youngstown, Ohio; the Detroit-Hamtramck complex in Detroit; and the Oshawa, Ontario, assembly complex near Toronto. It will also stop building several models now assembled at those plants, including the Chevrolet Cruze, the Chevrolet Volt hybrid, the Cadillac CT6 and the Buick LaCrosse. Additionally, GM plans to shutter the Warren transmission plant outside Detroit and a plant that makes electric motors and drivetrains outside Baltimore, Maryland. The Cruze compact car will be discontinued in the U.S. market in 2019, although GM may continue building it in Mexico for other markets, Barra said. Reporting by David Shepardson. Related Video: