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GM cutting production at two plants

General Motors is continuing to adjust to excess supply of some of its brands' models. To get production more in line with the vehicles' actual demand, the automotive giant is idling two of its factories in North America in the coming months. The Orion Assembly plant is going to be down from March 9-13, according to an anonymous plant worker and another insider speaking to Automotive News. The factory builds the Chevrolet Sonic and Buick Verano, but there are plenty of both models sitting on dealer lots, including 216 days worth of Sonics, according to AN. The factory already had two idle periods announced to reduce the excess. In addition, downtime is scheduled at GM's "Flex" line at the Oshawa, Ontario, Canada, plant from April 13-17. This affects supply of the Chevrolet Camaro, Impala, Buick Regal and Cadillac XTS. Among them, the automotive giant has the largest supply of Regals ready for dealers with 213 days worth of them, according to AN. The future for the whole Oshawa factory is cloudy in general, though. There are rumors that it could close entirely in the future because the Camaro is leaving and the Regal and XTS might not last much longer than 2017. The Canadian government and the labor union there intend to put up a fight, though. News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing Buick Cadillac Chevrolet GM orion assembly oshawa plant idle

Chevy, Lincoln dealers say they still want sedans

Detroit automakers have famously turned their backs on sedans as they make the strategic bet to double down on money-making trucks and SUVs, but dealers for at least two American brands are giving the companies contrary signals. In separate recent interviews with leading national dealer councils for Chevrolet and Lincoln, Automotive News reports that both brands’ dealers still see a need for cars. The publication published a Q&A interview with Mike Bowsher, chairman of the Chevrolet National Dealer Council, who said Chevy dealers managed to hold onto market share last year despite the phase-out of the Cruze compact sedan and hatchback, thanks to products like the Spark and Sonic subcompacts and the Trax and Equinox crossovers. But, he acknowledged, “We do feel like we could use a car, especially in the low-MSRP range.” The comments follow similar recent comments from Tom Lynch, who chairs the Lincoln National Dealer Council. He told AN, “If weÂ’re not in segments where there is still a good amount of business, I think the company and the dealers lose out.” The Cruze was one of the victims of GMÂ’s November 2018 announcement of plant closures, with production having ceased with the closure of GMÂ’s Lordstown, Ohio assembly plant last year. GM sold 47,975 Cruzes in 2019 but a healthy 142,617 in 2018. At Lincoln, Lynch said the council has been telling the company it needs to stick with the sedan segment, despite plans to kill the MKZ sedan in the coming months and unconfirmed reports that the Continental isnÂ’t long for this world, either, despite the buzz of the suicide-door Coach Door Edition, shown in the photo above. Lincoln sold 17,725 MKZs and 6,586 Continental sedans in 2019, down a combined 15%, but still good for almost 22% of overall Lincoln sales. It's worth noting that Lincoln competes in a luxury segment that still expresses allegiance to four- and two-door cars. Even Cadillac, its cross-town rival, is staying active with the upcoming CT5 and CT4 sedans. Lynch pointed to Tesla as evidence that strong sedan products can resonate with consumers, though he conceded that “What that looks like for Lincoln going forward, IÂ’m not sure of.” For now, anyway, Chevy still offers the Sonic and Spark subcompacts, the latter of which saw sales climb 32.5% in 2019 to 31,281 (Sonic sales fell nearly as steeply).

GM earnings rise 1% as buyers pay more for popular pickups

DETROIT — General Motors said Thursday that higher prices for popular pickup trucks and SUVs helped overcome slowing global sales and profit rose by 1% in the second quarter. The Detroit automaker said it made $2.42 billion, or $1.66 per share, from April through June. Adjusting for restructuring costs, GM made $1.64 per share, blowing by analyst estimates of $1.44. Quarterly revenue fell 2% to $36.06 billion, but still beat estimates. Analysts polled by FactSet expected $35.97 billion. Global sales fell 6% to 1.94 million vehicles led by declines in North America and Asia Pacific, Middle East and Africa. The company says sales in China were weak, and it expects that to continue through the year. In the United States, customers paid an average of $41,461 for a GM vehicle during the quarter, an increase of 2.2%, as buyers went for loaded-out pickups and SUVs, according to the Edmunds.com auto pricing site. The U.S. is GM's most profitable market. Chief Financial Officer Dhivya Suryadevara said she expects the strong pricing to continue, especially as GM rolls out a diesel pickup and new heavy-duty trucks in the second half of the year. "We think the fundamentals do remain strong, especially in the truck market," she said, adding that strength in the overall economy and aging trucks now on the road should help keep the trend going. Light trucks accounted for 83.1% of GM's sales in the quarter, and pickup truck sales rose 8.5% as GM transitioned to new models of the Chevrolet Silverado and GMC Sierra, according to Edmunds, which provides content to The Associated Press. As usual, GM made most of its money in North America, reporting $3 billion in pretax earnings. International operations including China broke even, while the company spent $300 million on its GM Cruise automated vehicle unit. Its financial arm made $500 million in pretax income. Suryadevara said GM saw $700 million in savings during the quarter from restructuring actions announced late last year that included cutting about 8,000 white-collar workers through layoffs, buyouts and early retirements. The company also announced plans to close five North American factories, shedding another 6,000 jobs. About 3,000 factory workers in the U.S. whose jobs were eliminated at four plants will be placed at other factories, but they could have to relocate. GM expects the restructuring to generate $2 billion to $2.5 billion in annual cost savings by the end of this year.