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May 2016: FCA wins, Ford and GM stumble on weak car volumes

The May 2016 sales numbers are in, and it looks as though FCA is getting some vindication for boldly cancelling two slow-selling car models. Meanwhile, Ford saw overall sales dip and GM's May volume took a big dive versus the same month in 2015. While Marchionne's decision to axe the Chrysler 200 and Dodge Dart has drawn criticism as being short-sighted, it's working for FCA so far. Although the Dart and 200 aren't out of production yet and no capacity has been shifted to crossover or trucks, May's numbers show that the emphasis on Jeep and Ram models makes sense right now. FCA's US sales rose 1 percent last month compared to May 2015, putting the year-to-date total at 955,186 vehicles, an increase of 6 percent compared to the same period last year. Standouts included the Jeep Renegade, Compass, and Patriot, and the Fiat 500X. Ram pickup sales were down 3 percent. And your fun fact is that Alfa Romeo sales were up precisely 10 percent, for a total of 44 4Cs sold versus 40 in the same month last year. At FoMoCo, the Ford brand took a hit to the tune of 6.4 percent from May 2015 to 2016, registering 226,190 sales last month. Lincoln showed improvement on its modest numbers, going from 9,174 to 9,807, a 6.9 percent increase. Overall, Ford was down 5.9 percent for the month to 235,997; despite the slump, year-to-date total Ford sales are up 4.2 percent to 1,112,939. Strong sellers included Escape, Expedition, F-Series, and Transit - big stuff. Most small and/or efficient models (Fiesta, Focus, Fusion, C-Max) saw sales slides. Fusion sales were also down, likely due to effects of model changeover to the freshened 2017 model. Ford has promised four new crossovers and SUVs by 2020 and if things keep trending this way the company will be able to sell them, but things could change in the next four years. GM saw the worst of it for domestic brands. Retail and fleet sales were down for each of the four divisions, with the May 2016 total dropping 18 percent to 240,450 vehicles. GM's year-to-date sales are down 5.0 percent in 2016 to 1,183,705. Both the Sierra and Silverado were down significantly, and the majority of Chevy, Buick, GMC, and Cadillac nameplates saw sales decreases, with both small cars and larger utilities included. Not even big stuff could help GM this month, it seems. We'll have more on the rest of the industry's May sales as those figures trickle in.

Cadillac recalls ELR coupe over stability control problems

Cadillac is recalling about 656 2014 ELR models made between September 26, 2013 and February 14, 2014, because of a fault with the electronic stability control system. On cars without adaptive cruise control, it's possible that diagnostics could prevent the system from telling the driver if ESC is on or off.
Cadillac has a software fix ready and repairs begin on April 17. Alan Adler, General Motors' recall and legal spokesperson, tells Autoblog that only about 55 of the affected cars are in the hands of owners. The rest are either on dealer lots or still at the factory. There have been no reported injuries or crashes caused by the fault.
The correction for the stability control system involves a software recalibration of the electronic brake control module that takes around 20 minutes to perform. While they use the same platform, the Chevrolet Volt isn't involved in this recall because it "uses a different a brake control module," said Adler.

Cadillac to add small sedan, crossover as part of major product blitz

Cadillac will add a small sedan and a compact crossover to its lineup in the next several years as part of an ambitious product blitz that will remake its lineup. The sedan will slot below the ATS, which is currently Cadillac's smallest four-door car. It's scheduled to arrive in 2017, Cadillac president Johan de Nysschen told Autoblog at the Detroit Auto Show. The sedan will be followed late that year or in early 2018 by a compact crossover, which will be positioned below the SRX. The crucial redesign of the SRX – Cadillac's top seller – arrives in 2016. It will switch to the brand's new naming system and change to an "XT" prefix followed by a number. The naming scheme debuts on the CT6, which launches in late 2015 and will be positioned above the CTS and XTS sedans. Cadillac also wants to add another crossover that sits between the SRX and its flagship SUV, the Escalade, at some point. Further out, Cadillac's long-awaited Mercedes-Benz S-Class fighter could arrive around 2020, and it would serve as the flagship or "showcase of the brand," de Nysschen said. Cadillac is also looking to expand its powertrain portfolio and is contemplating a wide range of options, including hybrids, plug-in electric vehicles and diesel engines. The new cars and crossovers are part of a $12-billion investment in Cadillac, which de Nysschen described as "an unheard level of capital" from General Motors. In total, the brand will receive eight new products through 2020. "Our product offensive will provide the substance for our ambitions," he said. De Nysschen has set high goals – and made major changes – at Cadillac since he took over the 113-year-old luxury brand in September. The brand moves to a separate headquarters in New York this year, away from GM's base in Detroit, and it has switched advertising agencies in a bid to elevate its image. Cadillac's sales declined 6.5 percent in the United States in 2014 to 170,750 units, and it has the smallest volume of GM's four brands. "Here in the US we continue to make progress, but we also face challenges," de Nysschen said. He added the brand's lineup "clearly limits our growth opportunities in the US market." Still, de Nysschen is taking the long view for Cadillac, noting it took years to turn around Audi, where he was president of its US operations for eight years. Cadillac's global sales have inched up five percent globally this year, spurred by a 47-percent surge in China.