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GM is quietly slashing prices on base models

While General Motors' fourth quarter financial figures haven't yet been released, the automaker seems to be weathering a potentially rocky time well, even beating third-quarter projections last year. To keep the climb going, the company is launching new base trims for several popular models that make them cheaper than ever but with tight dealer margins. The new entry-level trims are the Chevrolet Cruze L, Equinox L, GMC Terrain SL and Buick LaCrosse 1SV. Buyers lose some content by picking them, but the prices are slashed. According to Cars Direct, the biggest savings are on the LaCrosse, where customers pay $31,065, plus $925 destination, $2,570 less than the previous base 1SB trim but must accept things like 17-inch wheels and no cargo net in the back. If you're wondering how Buick can remove only a little equipment but cut the price so much, it's because the company also slashed dealer margins. According to Cars Direct, the difference between the invoice and MSRP for the LaCrosse 1SV is only around $150, compared to around $1,350 before. The disparity is even greater for the Cruze with an $81 difference in the prices, compared to about $600 for the LS version. Showrooms are expected to keep very low stocks of these trims, though. "Dealers use such vehicles to get people in the door, but they do not generally want to do high volumes of these strippers. The margins are next to nothing; they don't make much money off these cars," said Ed Kim, Vice President of Industry Analysis for AutoPacific to Autoblog. Dealers are also expected to advertise that these new base trims undercut major competitors. For example, the Cruze L rings up for about $2,320 less than a Honda Civic LX, according to Cars Direct. One potential drawback for buyers is that these models might not be eligible for incentives. While the attractive prices might get customers into dealers, folks may not actually end up driving home with these entry-level models. Kim indicated base trims also make up a small portion of the sales mix. "Consumers aren't asking for stripped out vehicles, even at the low end of the marketplace," he said. Featured Gallery 2015 Chevrolet Cruze View 9 Photos News Source: Cars DirectImage Credit: Chevrolet Buick Chevrolet GM GMC Car Buying Car Dealers Crossover Sedan gmc terrain cheap cars

Opel to electrify all model lines by 2024, speeding PSA transition

What do you see in the Opel logo? That's right, a lightning bolt. As the German automaker dramatically restructures its future plans, electric cars are in the core of Opel's survival. With attempts to stop leaking money, Opel is speeding up its secession from GM technology, launching nine new models by 2020 with the aim to complete transition to PSA hardware by 2024, leaving only two Opel platforms. This is all part of Opel's freshly announced PACE turnaround plan, which is crucial for the company's survival, according to CEO Michael Lohscheller. "PACE will unleash our full potential. This plan is paramount for the company, to protect our employees against headwinds and turn Opel/Vauxhall into a sustainable, profitable, electrified, and global company," says Lohscheller. Competitiveness will be improved by reducing per-car costs by 700 euros, and by cutting marketing costs by 10 percent. Regarding Vauxhall's future, the statement still includes the British brand. When the Opel sale agreement was reached between PSA and GM in March, the plan was to start implementing PSA technology in 2019, completing the transition in eight years, as Automotive News says. The new business plan is noticeably faster. By 2020, with full access to PSA's electric tech, Opel would have a fully electric next-generation Corsa hatchback and a PHEV version of the Grandland X SUV, which is already based on Peugeot's 3008 model. Currently, there are nine Opel platforms and 10 engine families. By 2024 there should be two platforms and four powertrains; the number of diesel engines in use remains to be seen, and all product lines would include an electrified model. There would be an SUV and a midsize vehicle based on PSA's EMP2 architecture, with the former built in Eisenach — formerly known as the town that built East German Wartburg cars before its Opel era — and the latter built in Russelsheim, where Opel HQ is located. The Russelsheim hub will become PSA's global "competence center," where all Opel/Vauxhall vehicles would be engineered — not Paris. Plans include avoiding any factory closures or personnel layoffs. The PACE statement also mentions Opel's entrance to all of 20 new export markets, with a specific mention of China and Brazil, countries which have traditionally seen Opels sold as Chevrolets. Will the United States be included in that export plan?

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.