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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.

GM laying off 510 amidst slow Cadillac, small car sales

General Motors is laying off about 510 workers from two factories beginning in January, and it could be months before the automaker needs some of that latent capacity to come back on line. A combination of poor sales and high dealer inventories are prompting the cutbacks, according to Automotive News.
The largest changes come at GM's Lansing Grand River plant, where the Cadillac ATS and CTS are made. An entire shift of about 350 workers is being laid off, but the automaker hopes to find positions for some of them at other nearby factories. The decision leaves just a single shift building vehicles there. According to Automotive News, the move is partially spurred by Johan de Nysschen's plan to make Cadillac a more exclusive brand.
The lost shift will likely return for production of the next-generation Chevrolet Camaro at the plant, according to the report, but GM isn't saying when that will be. A previous announcement from the Canadian Auto Workers union indicated that the Oshawa, Ontario, factory would lose the coupe in late 2015 or early 2016.

Buick confirms US-market Envision CUV to be built in China

As expected, the Buick Envision will come to the US market in 2016, and as rumored, it'll be GM's first product imported from the People's Republic. Buick confirmed the news today, while also releasing a number of technical details on the mid-size CUV, which has sold nearly 130,000 units in the Chinese domestic market in the first 11 months of 2015. When it arrives in US dealers next summer, the Envision will feature a 2.0-liter, turbocharged four-cylinder EcoTec four-cylinder. Good for an estimated 252 horsepower and 260 pound-feet of torque, the four-pot turbo is paired to a well-received six-speed Hydra-Matic 6T70 transmission. That's the same automatic gearbox that's offered in the turbocharged Regal and Regal GS and the current six-cylinder LaCrosse. The entire affair is underpinned by torque-steer-fighting HiPer strut front suspension, a crossover first for Buick, with a four-link setup in back. According to Buick, the Envision will also get the same Active Twin Clutch all-wheel-drive system being offered on the Cadillac XT5 and the new LaCrosse. Like the Chinese-market Envision, Buick is offering the USDM model with active grille shutters, LED running lights, LED taillights, heated front/rear seats, a heated steering wheel, 19-inch wheels, and a Bose stereo as standard. Buick also lists highlights like Active Noise Cancellation and an eight-inch IntelliLink infotainment system, although it's not clear whether these are standard features. There's no word on which auto show the Envision will debut at. Considering the timing, next month's Detroit Auto Show is a strong contender, although if Buick wanted to really drum up headlines ahead of its on-sale date next summer, it'd formally introduce its newest CUV in April, at the New York Auto Show. Either way, expect to see more of this handsome, Chinese-built CUV soon. Related Video: Buick Envision North American Market Fact Sheet 2015-12-04 The Buick Envision was designed, engineered and tested in Michigan as a world-class luxury crossover to challenge the world's best competition. It was awarded Motor Trend SUV of the Year in China and has 127,085 sales so far this year. When it goes on sale in 2016, it will play an important role in a crossover lineup that currently represents 60 percent of Buick sales in North America. It targets customers shopping between the Encore, the best-selling Buick in eight years, and the Enclave, which has continued to grow its customer base since its 2007 introduction.