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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.

GM promises to add 20 EVs and fuel-cell cars to lineup, paid for by SUVs

DETROIT — General Motors outlined plans on Monday to add 20 new battery electric and fuel-cell vehicles to its global product lineup by 2023, financed by robust profits from sales of gasoline-fueled trucks and sport utility vehicles in the United States and China. "General Motors believes in an all-electric future," GM global product development chief Mark Reuss said on Monday during a briefing at the company's suburban Detroit technical center. Future generations of GM electric vehicles "will be profitable," Reuss said, but added it was not clear when GM could make all its new vehicle offerings zero-emission electric cars. Regulators in China and some European countries have floated proposals to ban internal combustion engines by 2030 or 2040. "We will continue to make sure our internal combustion engines will get more and more efficient," Reuss said. GM shares were up more than 4 percent in midday New York trading on positive comments from Rod Lache, auto analyst at Deutsche Bank. Automakers, including electric vehicle market leader Tesla, lose money on electric cars because battery costs are still higher than comparable internal combustion engines. The company offered sneak peeks of three EV prototypes: a Buick SUV, a sporty Cadillac wagon and a futuristic pod car wearing a Bolt badge. GM funds its forays into new technology using a river of cash generated by old-technology vehicles popular with its core customer base in the United States heartland. In comparison, Tesla has burned through an estimated $10 billion in cash and has yet to show a full year profit. GM earned more than 90 percent of its $12.5 billion in pretax profits last year in North America, amid robust demand for its lineup of large sport utility vehicles and pickup trucks. The company's profitable operations in China rely on consumer demand for an expanding lineup of gasoline powered SUVs. GM has previously announced plans to make some of its future electric vehicles capable of driving themselves in robot taxi fleets. The company offered sneak peeks of three electric vehicle prototypes: a Buick brand sport utility vehicle, a sporty Cadillac wagon and a futuristic pod car wearing a Bolt badge. GM collaborated with Korean battery maker LG Chem to build the Bolt battery system. Company officials did not say what companies would supply batteries for the larger fleet of vehicles promised by 2023. Fuel-cell vehicles will also play a role in GM's future, the company said.

Automakers' sound systems: Crank it, don't yank it

Years ago, one of the first things most music lovers did after buying a new vehicle was drive to an aftermarket stereo shop to get the crappy stock components swapped for better gear. And you'd typically get not only better sound but also more bang (and boom) for your buck. But in the past decade or so, the overall quality of OEM audio has dramatically increased, while car electronics became more complex, removing the incentive for most new vehicle owners — and all but the most hardcore DIYer — to start from scratch. In 2010, I did a comparison of the average costs for OEM electronics vs. similar offerings from the aftermarket, and back then automakers' stock premium systems were by far the best bargain — and are probably an even better value now. The premium 14-speaker, 1,200-watt JBL system in the all-new 2019 Toyota Avalon is a prime example of this trend. It's standard on the top two Limited and Touring trims and is available as a $680 audio upgrade on the XLE and XSE. I doubt you can even buy 14 speakers and 1,200 watts of amplification from the aftermarket for 700 bucks, much less have it all installed. And because the system is bundled with Toyota's Entune infotainment system, Apple CarPlay and a surround-view camera, removing the head unit means you would likely lose these features. Another advantage of OEMs and their audio partners is they can design the car around the audio system. In the past, automakers would typically place speakers where convenient for packaging, not for optimal sound reproduction, and audio engineers were forced to compromise. But as with the Avalon's premium JBL audio system, this is starting to change. At a recent behind-the-scenes peek for media into the process of developing the system, Toyota and Harman engineers delved into the minutia of sealing the inner panel of the front doors to create an enclosure for 6x8-inch woofers, making space in the pillars for JBL horn tweeters and extensively measuring the acoustic properties of the interior to tune the sound to the space. I'm met some creative and skilled car stereo installers, but none with a degree in psychoacoustics. The system is also the first to feature Quantum Logic Surround that creates a multi-channel listening experience from two-channel sources. And it includes Harman's Clari-Fi processing that "rebuilds key details lost" in compressed audio formats used by streaming music services and MP3s.