2006 Cadillac Sts on 2040-cars

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Even if GM does close all 5 of those plants, it'll still have too many

DETROIT — General Motors' monumental announcement on Monday that it will close three car assembly plants and two powertrain plants in North America and slash its workforce will only partially close the gap between capacity and demand for the automaker's sedans, according to a Reuters analysis of industry production and capacity data. Sales of traditional passenger cars in North America have been declining for the past six years and are still withering. After GM ends production next year at factories in Michigan, Ohio and Ontario, it will still have four U.S. passenger-car plants — all operating at less than 50 percent of rated capacity, according to figures supplied by LMC Automotive. In comparison, Detroit-based rivals Ford and Fiat Chrysler Automobiles will have one car plant each in North America after 2019. The Detroit Three are facing rapidly dwindling demand for traditional passenger cars from U.S. consumers, many of whom have shifted to crossovers and trucks. Passenger cars accounted for 48 percent of retail light-vehicle sales in the United States in 2014, according to market researchers at J.D. Power and Associates. This year, sedans will account for less than a third of light vehicle sales. That shift in turn has left most North American car plants operating far below their rated capacities, while many SUV and truck plants are running on overtime. The collapse in passenger-car demand is a challenge for nearly all automakers in the United States, including Japan's Toyota and Honda, which have the top-selling models in the compact and midsize car segments. Toyota executives said last month they are evaluating the company's U.S. model lineup. But Toyota also plans to build compact Corolla sedans at a new $1.6 billion factory it is building in Alabama with partner Mazda. The obstacles facing GM in its plans to close more auto factories became apparent on Tuesday as U.S. President Donald Trump threatened to block payment of government electric vehicle subsidies to GM. While it is not certain that Trump unilaterally has the power to do that, he made it clear he intends to use his office to pressure the company to keep open a small car plant in Ohio that GM says will stop building vehicles in March.

Recharge Wrap-up: BMW to test autonomous cars, Korea bans sales of BMW, Nissan, Porsche models

BMW will test autonomous cars on public roads by the second half of 2017. The German automaker, with partners Mobileye and Intel, will operate a fleet of 40 self-driving vehicles using a "scalable architecture" that will be made available to other automakers. The partners plan to offer products ranging from key components to "a complete end-to-end solution" for autonomous driving. Since parting ways with Tesla, Mobileye also recently announced it would provide its technology to Lucid Motors. For BMW, it all leads up to its fully autonomous iNext model slated for introduction in 2021. See the video above, and read more in the press release from Intel. South Korea has banned the sale of certain models from BMW, Nissan, and Porsche over emissions cheating. Following an investigation, regulators determined emissions testing documents to be falsified. The country's Ministry of Environment has fined the three automakers a total of $5.9 million, and revoked the certification of 4,523 vehicles across banned 10 models. Six of the models were still on sale, while the other four have been discontinued. Read more from Automotive News Europe. China's prices for the Cadillac CT6 Plug-in are significantly higher than those announced for the US. The plug-in hybrid version of the luxury sedan recently went on sale with the two variants priced at RMB 558,800 and RMB 658,800. At the time of this writing, that's $80,420 and $94,812. Cadillac announced it would bring the CT6 Plug-In Í– which is built in China – to the US in the spring of 2017, starting at $76,090 before federal and local tax incentives. Hybrid Cars points out that China's own generous incentives could help to make it more competitive. The offering of a charger with free installation as well as an eight-year warranty on the electric powertrain should help, too. Read more at Hybrid Cars. A Connecticut court has ruled in favor of Tesla's gallery showroom in Greenwich. Last May, the Connecticut Automotive Retailers Association brought the suit to block the showroom on Greenwich Avenue, which has now been dismissed by the Connecticut Superior Court. Tesla cannot offer test drives, sell cars, or operate a Supercharger at the location, but it can sell other branded items and educate the public about its vehicles. It's possible that the issue of Tesla's direct sales model could come up again this year in Connecticut state legislature. Read more at Teslarati .

Cadillac still planning for big things in China

Despite some hiccups, China remains the auto industry's great hope for new vehicle sales, with significant sales gains and a huge upside. Nowhere is that hope more fervent than at General Motors, which offers eight different marques in the Asian nation. China has been GM's single biggest market the last three years running, and is unlikely to give up that title anytime soon. Yet its premiere brand, Cadillac, has remained essentially stagnant, selling just 30,000 units in China last year. That's in a segment where sales of luxury vehicles has outpaced that of the larger Chinese market. So what gives?
According to Cadillac officials Autoblog spoke with in China this week at the Shanghai Motor Show, it's been a problem of product - they haven't had the right ones. Displacement taxation issues, import tariffs and currency fluctuations have all conspired to make the brand's products less appealing than they might otherwise have been. But GM is stepping on the gas with Cadillac, and executives are eyeballing 100,000 sales by 2016 - more than triple the Wreath and Crest's current volume. And the expectations for the brand only get more ambitious from there - they're shooting for 10 percent of the luxury market by 2020. Bob Socia, President of GM China, promises that there will be a new Caddy launched in the market each year from now through 2016 and most will be built in China. Characterizing the company's efforts to revive the brand's fortunes as a "relaunch" of sorts, Cadillac also figures to gain dealers as GM expands its sales outlet footprint westward.
New products like a made-in-China XTS sedan (with a market-specific 2.0-liter four-cylinder to avoid heavy displacement taxes) will help, and Socia hinted that the ATS sport sedan could be next in line for in-country production. The SRX crossover - currently the brand's best-selling model in China - will also likely get a long look for future local production when the next-generation model is introduced. In the meantime, Cadillac unveiled the Escalade ESV Hybrid (shown above) as its latest model addition to capitalize on the market's white-hot luxury SUV segment.