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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.

Weekly Recap: Geneva's splendor reflects growing demand for ultra-luxury cars

Geneva is one of the most glittering auto shows in the world, but the list of high-powered and bespoke luxury cars was decadent this year even by the rich standards of the Swiss exhibition. It's great for enthusiasts to revel in the flame-throwing Aston Martin Vulcan, the racing-inspired elegance of the Bentley EXP 10 Speed 6 concept and the insane performance of the Lamborghini Aventador LP 750-4 Superveloce, but there's a reason for all of this opulence: the luxury market is big business. And it's growing. IHS Automotive forecasts that so-called ultra-premium sales will nearly triple this decade from 123,000 to 353,000 units around the world. The estimate includes brands like Aston Martin, Bentley, Ferrari and Rolls-Royce, but doesn't count BMW, Mercedes and Audi, which offer less expensive models in addition to their high-end flagships. Though IHS includes Porsche and its relatively large volume in the study, the ultra-premium segment is still set grow at about the same rate, even without the German automaker's figures. So what is propelling all of this growth in the most expensive segment of the auto industry? Put simply, there's more rich people. IHS Automotive principal analyst Tim Urquhart pointed to economic expansion in China, market recovery in the United States and a surge in the lucrative technology sector as contributing factors. This dovetails with a research report by UK-based Oxfam, an international relief organization, which found the world's richest one-percent owned 48 percent of global wealth in 2014, and it's expected to increase to more than 50 percent by 2016. View 17 Photos Carmakers are moving quickly to capitalize with new products, expanding their portfolios with low-volume speedsters like the 800-hp V12 Vulcan at Geneva, and plans to enter new segments, like Rolls-Royce's strategy to make an SUV. "Ultra-premium carmakers are looking to explore ways of growing their product offerings, and thus their bottom lines, in this most potentially profitable of segments," Urquhart wrote in a report on the Geneva show. In a nutshell, there are more choices for people with more money. It's a good time to have expensive taste. Other News & Notes 2016 Mazda MX-5 Miata production launches It won't be long now. The 2016 Mazda MX-5 Miata arrives later this year, and it's officially in production. Mazda announced this week that the roadster began rolling off the assembly line at its Ujina factory in Hiroshima, Japan.

Auto Show Notebook: Legendary Continental name inspired Lincoln's designers

What's in a name? A lot for the Continental concept, and it gave Lincoln designers a sense of purpose as they styled the brand's upcoming flagship sedan. "The moment that we told them, it was amazing," Lincoln president Kumar Galhotra said. "They totally got it." "It" is cutting-edge technology wrapped in stately, large-sedan design. It's a nod to Lincoln's storied past, but a signpost for where the brand is heading. Though the Continental name dates to the late 1930s, Lincoln designers avoided making the concept overtly retro. "You can't let it pull yourself back too far in history, but you've got to design a car that lives up to the name," Galhotra said. Speaking to Autoblog on the floor of the New York Auto Show where the Continental formally debuted Wednesday, the Lincoln president reiterated that the car is on track to launch in 2016. It will compete against the Audi A6, Lexus GS, BMW 5 Series and other large luxury sedans. After its debut, the concept in New York will fly to China – another critical market for Lincoln – for display there. It will be replaced in New York by a prototype without an interior. The Continental is the latest high profile play by Lincoln to raise its image with consumers, who have either ignored or forgotten about it amid steep competition in the luxury sector from German and Japanese brands and a potentially resilient Cadillac. Lincoln sales are essentially flat compared with 2014 through the first quarter of this year, with total volume of 21,478 units. The middling start to 2015 comes on the heels of nearly 16-percent sales growth last year spurred by the launch of the MKC and the prominent signing of Matthew McConaughey to star in Lincoln advertisements. Other News, Notes & Quotes Speaking of names, Chevrolet did its homework before deciding to proceed with "Malibu" for its new generation of midsize cars. "We went out and researched it," said Alan Batey, president of General Motors North America. "People actually like the name 'Malibu,'" he said. Admittedly, the current Malibu has struggled in the marketplace against entrenched competitors, Batey said, but he's optimistic its awareness and historical value are assets to the dramatically redesigned sedan."The name's strong," he said. Meanwhile, in other Chevy news, the brand kicked off a new marketing campaign, "Real People, Not Actors" Wednesday. It will show consumers interacting with Chevys and their spontaneous reactions to the vehicles.