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GM may kill 6 car models as it works with UAW to tackle sales slump

The president of the United Auto Workers union said on Thursday the union is talking with General Motors about the potential threat to plants and jobs from slumping U.S. car sales. GM's response will be more trucks and SUVs, and sources say at least six slow-selling car models may be killed off. "We are talking to (GM) right now about the products that they currently have" at underused car plants such as Hamtramck in Michigan and Lordstown in Ohio, and whether they might be replaced with newer, more popular vehicles such as crossovers, Dennis Williams told reporters. "We are tracking it (and) we are addressing it," Williams added. GM has cut shifts at several U.S. plants this year as inventories of unsold cars have ballooned. Industry analysts said more jobs could be at risk as the automaker wrestles with permanently shrinking production of small and midsized sedans. GM is reviewing whether to cancel at least six passenger cars in the U.S. market after 2020, including the Chevrolet Volt hybrid, which could be replaced in 2022 with a new gasoline-electric crossover model, Reuters has learned from people familiar with the plans. Other GM cars at risk include the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala and Chevrolet Sonic, sources said. Some analysts have singled out GM's Hamtramck plant in Detroit as one of the most vulnerable because of plummeting car sales. The plant, which opened in 1985, builds four slow-selling models: Buick LaCrosse, Chevrolet Impala, Cadillac CT6 and Chevrolet Volt. In the first half, it built fewer than 35,000 cars, down 32 percent from the same period in 2016, according to suppliers familiar with GM's U.S. production schedule. The typical GM assembly plant builds 200,000-300,000 vehicles a year.COMING ATTRACTIONS: TRUCKS AND SUVS GM must "create some innovative new products" to replace slow-selling sedans "or start closing plants," said Sam Fiorani, vice president of AutoForecast Solutions. The auto maker already has begun to shift future production plans from cars to trucks, according to Morgan Stanley auto analyst John Murphy. He estimates that fewer than 10 percent of the new vehicle models that GM will introduce over the next four years will be passenger cars, with the rest divided among trucks, SUVs and crossovers. GM plans to add production of the new Cadillac XT4 crossover next year to its Malibu sedan plant in Fairfax, Kansas.

GM moving international sales HQ to Singapore from Shanghai

General Motors has announced that it will be moving its international headquarters from Shanghai to Singapore, a move that will see 120 employees working from the city-state by the time business opens in 2014. Meanwhile, 250 to 300 of the employees at the Shanghai office will remain in China, according to a report from The Wall Street Journal.
The shuffle is part of a bigger reorganization that will see GM isolate its operations in the People's Republic from its broader international efforts. This sort of divide-and-conquer strategy will allow GM to still react to emerging markets while, according to the WSJ, providing a dedicated management team for the Chinese market. The team in Singapore will be responsible for operations in Africa, southeast Asia, Australia, India, South Korea and the Middle East, on top of managing Chevrolet and Cadillac in Europe, according to a statement from GM.
The shift to Singapore "will help us to create a renewed identity for CIO (Consolidated International Operations) and lead GM's umbrella strategy for the region," said GM Executive Vice President of CIO, Stefan Jacoby.

GM will likely build PHEV batteries in China soon

It's a big week for batteries. Friday, Tesla will hold a big event at its Gigafactory in Reno, NV. But even in Michigan, there are things happening on the electrified automotive front. This was proven when GM invited journalists to its Brownstown Battery Assembly Plant today, highlighting the six different battery packs it makes for nine vehicles around the world (plus a tenth, coming to Asia, that has not yet been announced). During our tour, we learned a few interesting tidbits that we thought readers would like to hear: The Cadillac CT6 plug-in hybrid launches in China this fall before coming to the US next year. GM builds the battery packs in Michigan and ships them to China for final assembly in the PHEV. For now, this is all fine for GM to qualify for China's incentives for building green cars in the country. But, as Bill Wallace, GM's director of global battery systems, told AutoblogGreen, this could change thanks to the country's 'Made in China 2025' plan. The situation is "evolving," he said, and it's a safe assumption that GM will need to build packs in China some day. For the CT6 PHEVs that will be sold in the US, the batteries will make a round trip, since GM will only build the plug-in version in China. As for the range of the CT6 PHEV, that hasn't been announced, but since China offers incentives for vehicles that get at least 50 kilometers (31 miles), that's a likely target (the US range (UPDATE: GM did announce an expected range for the CT6 PHEV in the US at the LA Auto Show last fall, saying it would "travel approximately 30 miles on a full electric charge"). The battery pack in the CT6 is also a clunky box-type thing, totally unlike the near-elegant T-shape used in the Volt. This despite the fact that the guts of the two packs are similar. Both have 192 li-ion cells and weigh almost the same, but GM tuned the CT6 pack for acceleration instead of range, the way it did with the Volt's pack. Still, the main reason the packs are different is because the CT6 is a rear-wheel drive vehicle, and the tunnel that the Volt's pack uses is occupied by the driveshaft. Despite the highly touted second-gen Chevy Volt going on sale last year, GM still has the capacity to build battery packs for the old, first-gen model. This is because the company is legally required to be able to provide replacement packs for warrantied vehicles (for up to 10 years), and the second-gen packs don't fit into the first-gen vehicles.