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GM announces six new recalls, covering 3.5 million vehicles

General Motors has just initiated another crushingly large recall, this time affecting some 3.36 million vehicles built between 2000 and 2014 and sold in the US, Canada and Mexico. Once again, the issue surrounds the cars' ignition switches, which can be kicked out of the run position if they're carrying extra weight or if they experience a "jarring" event. In this particular case, though, GM will modify the keys, rather than the ignition itself.
A four-by-six-millimeter hole will be drilled into the key, which will more safely accommodate the weight of the key ring. As is usually the case, the work will be done free of charge. The recalled vehicles include the 2000 to 2005 Cadillac Deville, 2004 to 2005 Buick Regal LS and GS, 2004 to 2011 Cadillac DTS, 2005 to 2009 Buick Lacrosse, 2006 to 2008 Chevrolet Monte Carlo, 2006 to 2011 Buick Lucerne and 2006 to 2014 Chevrolet Impala. Only the Impala is still in production, and even then, it's only sold to fleet companies.
According to an official statement from GM, there have been eight crashes and six injuries due to this latest issue. As if this isn't a dire enough blow for GM, the company has announced five smaller recalls, covering 165,000 vehicles.

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 laying off more than 4,000 workers Monday morning

According to reports from Automotive News, The Detroit News, and CNN, General Motors plans to begin laying off more than 4,000 salaried workers starting Monday morning. In a statement to AN, a spokesperson for the automaker said, "We are not confirming timing. Our employees are our priority. We will communicate with them first." We've been expecting layoffs at General Motors since November, 2018. At the time, the Detroit-based automaker announced it would seek to shed 8,100 salaried employees, shut down five assembly plants in North America, and kill off several slow-selling models. One month earlier, GM offered buyout packages to 18,000 workers and said it would seek to cut its global workforce by 25 percent. A spokesperson said at the time the moves were "proactive steps to get ahead of the curve by accelerating our efforts to address overall business performance." The cost-cutting moves are expected to save GM up to $2.5 billion in 2019 and as much as $6 billion by 2020. David Kudla, CEO and chief investment strategist of Mainstay Capital Management, referred to the impending culling as "Black Monday" and told The Detroit News that the layoffs would begin around 7:30 a.m. and continue in waves throughout the coming days and weeks. GM plans to deliver on its fourth-quarter and full-year 2018 earnings report on Wednesday. President Donald Trump plans to deliver the annual State of the Union address a day earlier on Tuesday. We expect to hear plenty more from both sides over the next several days.