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GM cutting vehicle trim options to save money for electrification

Information continues to filter out about GM's plans based on comments the automaker made during its Capital Markets Day event in February. GM President Mark Reuss said the company's push to save money by rationalizing the number of build combinations will continue in 2020, carrying on the work done in 2019. As GM Authority covers, last year, the carmaker cut 3,500 components across model lines, a 12% drop in the number of parts it needed to stock in its plants. Reuss used the next-generation Chevolet Equinox and GMC Terrain as examples for more cost efficiencies, saying build possibilities — which include international markets and their options — will be cut by more than 50%, and use more shared parts. "We will reduce total trim levels on Equinox and Terrain from eight to six," Reuss said, "reduce engine variants from 11 to 5, reduce build combinations from more than 200 to less than 100 per program, and see significant cost savings of an already paid-for architecture that took the mass out, helping us self-fund electrification programs." GM will plow a large amount of the money it saves into its ambitious EV program. In 2017, the automaker said it intends to have 20 electric vehicles on the market by the end of 2023, some of which could be shared between brands. An automotive analyst at Seeking Alpha and a piece in Automobile attempted to put specifics to what we should expect. As Automobile points out, the first two EVs in the 20-car program are already on sale, being the Ariv Meld and Ariv Merge eBikes available in Belgium and The Netherlands. We've seen the Cruise Origin autonomous rideshare taxi, although we don't know when it will hit the road. The next three, which we should see in the metal shortly, are two Cadillac EVs and the GMC Hummer EV pickup. The Cadillac pair are expected to be sized like the XT4 and XT5, and along with the Hummer, should hit the market starting in late 2021.

GM profits threatened by glut of pickups

Automotive News reports that General Motors may slash production or ramp up discounts in order to deal with an oversupply of pickup trucks. GM currently has more than double the standard supply of pickups, and the vehicles are threatening to dampen the automaker's profits for 2013. Typically, automakers try to sustain a 60- to 75-day supply of vehicles, but GM is currently loaded with a 139-day supply, as of last month. At the end of November, the automaker was sitting on 245,853 units.
The manufacturer says that it will adjust production accordingly before laying any incentives on the profitable pickups. Even so, there's some concern that the inventory swell could hurt the roll-out of the next-generation Chevrolet Silverado and GMC Sierra. GM actually began slowly stepping back production in August, but it's clear the company will take further action as it heads toward the end of the year and into the next. Analysts predict the automaker could reduce pickup manufacturing by nearly half in the first quarter of 2013.
That still may not be enough to keep GM from laying extra cash on the Silverado and GMC Sierra. While the company's incentive spending was down in November compared to the same month in 2011, both the Ram 1500 and Ford F-150 saw double-digit percentage increases in sales last month while the Silverado and Sierra numbers slid compared to a year prior. Incentive spending could help move more trucks and add some balance to the GM inventory surge.

2014 Chevy Cruze Diesel arrives with 42 mpg for $25,695*

The last time General Motors had a diesel passenger car in the US, it was the 1.8-liter 1986 Chevette. At the 2013 Chicago Auto Show today, GM is unveiling the much-anticipated 2014 Chevrolet Cruze Diesel. The compact bows with a 2.0-liter turbo-diesel four-cylinder engine that boasts 148 horsepower and 258 pound-feet of torque, with full twist coming on at just 2,000 rpm. What's more, the common-rail, direct-injection diesel features an overboost function that allows the engine to deliver up to 280 lb-ft of torque for 10 seconds at a time. Even with 10 more horsepower and 110 more pound-feet of torque than the available turbocharged 1.4-liter four-cylinder in the Cruze, the 2.0-liter diesel engine can return up to 42 mpg (highway) bolted to its six-speed automatic transmission.
If you're counting, that figure meets the less powerful Cruze Eco with a six-speed manual transmission. More importantly, the auto transmission Cruze Diesel matches its main competition, the Volkswagen Jetta TDI, in highway fuel economy. The Cruze 2.0 TD (as it will be badged) can also handle up to 20 percent biodiesel (B20), whereas the Jetta is rated only for B5. General Motors has not released city fuel economy for its newest diesel, but we do know how much it will cost you to jump behind the driver's seat.
GM will kindly ask for $25,695, plus an $810 destination fee. That marks a $2,115 premium over a loaded Cruze LTZ Auto and $2,640 more than the Jetta TDI, though the MSRP will net you a leather interior, 17-inch alloy wheels and an Aero Performance Package, as well as a two-year maintenance plan and five-year, 100,000-mile powertrain warranty. Compared to the gas-powered Cruze, you also lose a couple cubic feet of rear cargo space thanks to a 17-liter diesel emission fluid tank. That urea fluid, which helps put the clean in clean diesel, will need to be refilled at least every 10,000 miles.