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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.

GM recalling nearly 4,000 vehicles over airbag concerns

Four different General Motors vehicles from the 2012 model year are being recalled over a potential airbag issue. The driver's side airbag shorting bar in the 2012 Buick Verano and 2012 Chevrolet Camaro, Cruze and Sonic might make contact with the airbag terminals, even during a crash. If so, the airbag won't deploy when it should, possibly increasing injury to the driver.
The recall is expected to begin on February 13 for the 3,896 units that might be affected. GM will notify owners who can then take their vehicles to dealers to have the airbag coil replaced. A bulletin from the National Highway Traffic Safety Administration below has more info.

2015 Chevy Spark will have lighter, smaller battery

As General Motors gets ready to release the 2015 Chevy Spark EV, it is retooling the Brownstown Battery Assembly to build a new battery system for the chirpy little electric car. The new Spark will lose a few pounds and kWh from its lithium-ion pack, but it will keep all of it's performance specs. The current Spark EV uses a 21-kWh lithium-ion battery pack with bits made by A123 Systems (known as B456 Systems during bankruptcy). For the 2015 model, GM is going to build a 19-kWh battery system in-house that will use 192 LG Chem cells. Losing a bit of energy capacity means that the battery system for the 2015 Spark EV will be 86 pounds lighter but it will keep the EPA-rated 82-mile range and 119 MPGe. The 2015 Spark EV also keeps its $26,685 (plus destination) starting price from the 2014 model. The car will once again qualify for a federal tax credit of up to $7,500. LG Chem also supplies the cells for GM's other plug-in vehicles from its facility in Western Michigan. The Brownstown production line currently builds the battery packs for the Chevy Volt, the Opel Ampera and the Cadillac ELR. You can read our first drive of the 2014 Chevy Spark here. Brownstown Battery Assembly Expands Capabilities Will build battery system for 2015 Chevrolet Spark EV 2014-05-14 DETROIT – General Motors will bring all its electric vehicle battery building capabilities in-house with production of battery systems for the 2015 Chevrolet Spark EV at its battery assembly plant in Brownstown, Mich. "Using our in-house engineering and manufacturing expertise enabled us to deliver a battery system that is more efficient and lighter than the 2014 Spark EV without sacrificing range," said Larry Nitz, executive director of GM global transmission and electrification engineering. "Our successful working relationship with LG Chem has allowed us to deliver a new battery system for the Spark EV that helps us to better leverage our economies of scale." A newly designed battery system features an overall storage capacity of 19 kWh and uses 192 lithium ion cells. The cells are produced at LG Chem's plant in Holland, Mich. The battery system weight of 474 lbs. is 86 pounds lighter than the system in the 2014 Spark EV. The Spark EV battery is built on a dedicated production line at Brownstown, which also manufactures complete battery packs for the Chevrolet Volt, Opel Ampera and Cadillac ELR.