Buick Invicta Two Door Hardtop on 2040-cars

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Even if GM does close all 5 of those plants, it'll still have too many

DETROIT — General Motors' monumental announcement on Monday that it will close three car assembly plants and two powertrain plants in North America and slash its workforce will only partially close the gap between capacity and demand for the automaker's sedans, according to a Reuters analysis of industry production and capacity data. Sales of traditional passenger cars in North America have been declining for the past six years and are still withering. After GM ends production next year at factories in Michigan, Ohio and Ontario, it will still have four U.S. passenger-car plants — all operating at less than 50 percent of rated capacity, according to figures supplied by LMC Automotive. In comparison, Detroit-based rivals Ford and Fiat Chrysler Automobiles will have one car plant each in North America after 2019. The Detroit Three are facing rapidly dwindling demand for traditional passenger cars from U.S. consumers, many of whom have shifted to crossovers and trucks. Passenger cars accounted for 48 percent of retail light-vehicle sales in the United States in 2014, according to market researchers at J.D. Power and Associates. This year, sedans will account for less than a third of light vehicle sales. That shift in turn has left most North American car plants operating far below their rated capacities, while many SUV and truck plants are running on overtime. The collapse in passenger-car demand is a challenge for nearly all automakers in the United States, including Japan's Toyota and Honda, which have the top-selling models in the compact and midsize car segments. Toyota executives said last month they are evaluating the company's U.S. model lineup. But Toyota also plans to build compact Corolla sedans at a new $1.6 billion factory it is building in Alabama with partner Mazda. The obstacles facing GM in its plans to close more auto factories became apparent on Tuesday as U.S. President Donald Trump threatened to block payment of government electric vehicle subsidies to GM. While it is not certain that Trump unilaterally has the power to do that, he made it clear he intends to use his office to pressure the company to keep open a small car plant in Ohio that GM says will stop building vehicles in March.

Buick Electra-L, Electra-LT concepts lead the Wildcat to production

Buick loves the Beijing Motor Show, and why shouldn't it? Working with its local partner, SAIC, the brand seems to saves up so much mojo for April in Asia and shows up with stunning designs. Here are another two takes on the brand's latest sheet metal philosophy, penned by the SAIC-GM Pan Asia Technical Automotive Center and riding on GM's Ulitum platform, the Electra-L sedan and Electra-LT wagon concepts. The Electra-L could be seen as a production version of the Wildcat EV concept from 2022 (not the Wildcat from 1985) that launched Buick's new design language. All the major forms and curves are there, so too the turbine-style wheels, but the fastback roof's been stretched to create adequate headroom for a quartet. The edges of the front fascia have been redrawn to be less aggressive and form a canvas for illuminated ornamentation. The four-door stretches 198.3 inches long on a 118.1-inch wheelbase, meaning less than an inch difference in both dimensions between the Buick and the new BMW i5. Power comes from a single motor on the rear axle making 342 horsepower. A battery of unknown capacity is claimed to be good for a 435-mile range under China's CLTC test loop. The light-sensing glass roof hovers over a rectilinear instrument panel with a floating main display and a retractable 7-inch screen for the front passenger, four pressure-sensitive "zero-gravity" seats wrapped in an eco-friendly fabric, and rear quarters with a small inductive cooktop for enjoying tea in the custom tea set.  SAIC and Buick had less to say about the Electra-LT. Looking like the Allroad version of the Electra-L, it's got fender extensions framing the "titanium metal armor" wheel design, an air suspension that can lift the body by 1.6 inches, and that roof box to broadcast its light adventure credentials. Fitted with the same basic interior layout as the sedan, the wagon might add a third row; the description says its "eConnect smart cabin system supports 7-screen interaction." We're not sure if something got left out of the powertrain description, though, as the Electra-LT said to be powered by a 342-hp motor on the rear axle while also possessing "independent four-wheel drive."    Two years ago, Buick said it would introduce five all-new EVs in China by 2025. The sedan is rumored to be headed to the Chinese market next year, a production version perhaps ready by the time of the 2025 Auto Shanghai.

GM raises 2023 guidance on strong sales, higher profits

General Motors beat first-quarter profit estimates and raised its full-year earnings and cash-flow guidance after vehicle demand at the start of the year surpassed expectations. Its shares rose in premarket trading. GM made $2.21 a share in adjusted profit in the first quarter, compared to a consensus forecast of $1.72 a share. Revenue rose 11% to $39.99 billion, it said Tuesday, which was more than the $39.24 billion analysts expected. The stronger results stem from rising sales in the US, even in the face of higher interest rates and inflation. GM executives said demand was strong enough to revise 2023 guidance upward, boosting profit estimates for the year by $500 million to between $11 billion and $13 billion. “We did it with strong production and inventory discipline and consistent pricing,” GM Chief Financial Officer Paul Jacobson said on a call with journalists. “All in all, weÂ’re feeling confident about 2023.” The Detroit automaker raised per-share full-year guidance to between $6.35 and $7.35, up from $6 to $7 a share, and said free cash flow would also increase by $500 million to a range of $5.5 billion to $7.5 billion.  GMÂ’s shares pared a gain of as much as 4.4% before the start of regular trading Tuesday, rising 3.5% to $35.50 as of 6:55 a.m. in New York. The stock was up 1.9% for the year as of the close on Monday.  North American Strength The automakerÂ’s sales were particularly strong in North America, where first-quarter earnings rose before interest and taxes rose to $3.6 billion. Vehicle sales rose 18% to 707,000 in the region. Jacobson said the company originally expected to sell 15 million vehicles in the US this year, slightly less than the 15.5 million annualized rate automakers foresaw in the first quarter. North American demand was enough to offset a weak performance in China, GMÂ’s second-largest market. The automaker continues to struggle in the country, where its vehicle sales fell 25% to 462,000 vehicles in the quarter. Profits from its joint ventures in the market slumped 65% to $83 million.  The market has struggled overall in the wake of Covid-19 restrictions and foreign automakers have had to overcome a growing preference for Chinese brands by competing on price, squeezing profit margins. The situation in China probably wonÂ’t significantly improve until the second half of the year, according to Jacobson. GM remains on target to sell 150,000 electric vehicles this year, the CFO said.