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GM's Oshawa plant may close after Camaro production moves

Most of the time, when vehicle production is moved from one assembly plant to another, it spells bad news for the former. While General Motors won't go so far as to say its Oshawa, Ontario factory, which is losing the Chevrolet Camaro to the Lansing Grand River plant, is in trouble, analysts seem to think the factory's days are numbered. Forecasts for the facility are far from positive. The loss of the Camaro this year, combined with GM's targeted shutdown of a single-shift assembly line responsible for the fleet-only Chevy Impala Limited and the Equinox crossover is a bad enough omen. But with AutoForecast Solutions CEO Joe McCabe telling The Detroit News that the plant's other two products, the Cadillac XTS and Buick Regal, aren't likely to stick around beyond 2017, things look decidedly grim at Oshawa. "There is a fairly strong chance that the plant could close," Jeff Schuster, senior VP of forecasting for LMC Automotive, told The Detroit News. That doesn't mean that Unifor, Canada's auto union, and the Canadian government are going to let the factory die without a fight. And with the latter chipping in $10 billion as part of GM's 2009 bailout, you might think it has a degree of leverage in the situation. A meeting between the government and the Detroit Three at the 2015 North American International Auto Show revealed that Oshawa is already a topic of conversation. "We made it very clear that we would like to see an indication on the future of Oshawa sooner, in particular because the timing is very challenging for our supply chain to be able to adjust to potentially future orders or changes, but also to know that there are going to be future opportunities at Oshawa," Ontario's Minister of Economic, Development, Employment and Infrastructure Brad Duguid told The Detroit News. "Bottom line: It's time they made a longer-term commitment here," Unifor President Jerry Dias said, echoing Duguid's statements. It's unclear if this sort of strong talk will be enough to save 3,300-plus employees, although based on the analysts' forecasts, we doubt it.

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.

Netflix to feature electric cars from GM and others in programming

LOS ANGELES — Netflix has unveiled a new star for some of its upcoming programming: electric vehicles from General Motors and other automakers. The streaming service announced an agreement on Thursday to feature vehicles including the Chevrolet Bolt, the electric GMC Hummer pickup and the Cadillac Lyriq in TV series and films "where relevant." The companies will highlight the partnership in a commercial featuring Will Ferrell that will air during the Feb. 12 Super Bowl. Netflix and GM called the agreement "part of a commitment to a more sustainable future." Financial terms were not disclosed. Netflix said it will help creators "better understand how EVs can complement and enhance their stories." Shows that will feature GM's electric vehicles include "Love is Blind," "Queer Eye" and "Unstable." Netflix productions also will include electric vehicles made by other automakers, the company said.   Marketing/Advertising TV/Movies Chevrolet GM GMC Hummer