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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

New Takata problem results in recall of 414 GM vehicles

An airbag-inflator rupture discovered by Takata during testing has resulted in a new recall affecting 414 vehicles from General Motors, including 395 of them in the US. This latest campaign covers 2015 model-year examples of the Buick LaCrosse, Cadillac XTS, Chevrolet Camaro, Equinox, Malibu, and GMC Terrain. There are no reported breaks in any of these vehicles on the road, and the company estimates only one percent of them actually have the faulty parts. According to documents submitted to the National Highway Traffic Safety Administration (as a PDF), one side-airbag inflator failed a cold test at -40 Fahrenheit "releasing high pressure gas and propelling the separated components apart." The supplier told GM about the failure the next day. In these vehicles, the safety device might not only burst but the bag could inflate incorrectly, as well. GM and Takata say that a cause is not yet known, but they are "conducting an investigation." GM will begin notifying affected owners via overnight mail on Oct. 19. Dealers will replace the side airbag modules on all of the affected vehicles with new components outside of the suspect lot. All of the removed parts will also be collected for further study. Takata's faulty front airbag inflators have resulted in a serious scandal for the supplier. Initial figures indicated 34 million US vehicles are need of repair, though more recent figures have knocked that down to 23.4 million bad parts in 19.2 million automobiles. GM was already among the dozen automakers with models to fix, and some of its pickups were affected, along with the Saab 9-2X and Pontiac Vibe. GM Statement: General Motors is recalling 395 cars and crossovers in the U.S. because one of the front seat side air bags inflators may be defective. In the event of a deployment, the air bag's inflator may rupture and the air bag may not properly inflate. The rupture could cause metal fragments to strike the vehicle occupants, potentially resulting in serious injury or death. GM is unaware of any incidents involving vehicles with these components, which were part of a lot in which one inflator failed acceptance testing at the supplier. Dealers will replace the side air bag module or modules in affected vehicles. Including Canada, Mexico and exports, the total population of the recall is 414, GM estimates 1 percent of the recalled vehicles may have the defect.

A car writer's year in new vehicles [w/video]

Christmas is only a week away. The New Year is just around the corner. As 2014 draws to a close, I'm not the only one taking stock of the year that's we're almost shut of. Depending on who you are or what you do, the end of the year can bring to mind tax bills, school semesters or scheduling dental appointments. For me, for the last eight or nine years, at least a small part of this transitory time is occupied with recalling the cars I've driven over the preceding 12 months. Since I started writing about and reviewing cars in 2006, I've done an uneven job of tracking every vehicle I've been in, each year. Last year I made a resolution to be better about it, and the result is a spreadsheet with model names, dates, notes and some basic facts and figures. Armed with this basic data and a yen for year-end stories, I figured it would be interesting to parse the figures and quantify my year in cars in a way I'd never done before. The results are, well, they're a little bizarre, honestly. And I think they'll affect how I approach this gig in 2015. {C} My tally for the year is 68 cars, as of this writing. Before the calendar flips to 2015 it'll be as high as 73. Let me give you a tiny bit of background about how automotive journalists typically get cars to test. There are basically two pools of vehicles I drive on a regular basis: media fleet vehicles and those available on "first drive" programs. The latter group is pretty self-explanatory. Journalists are gathered in one location (sometimes local, sometimes far-flung) with a new model(s), there's usually a day of driving, then we report back to you with our impressions. Media fleet vehicles are different. These are distributed to publications and individual journalists far and wide, and the test period goes from a few days to a week or more. Whereas first drives almost always result in a piece of review content, fleet loans only sometimes do. Other times they serve to give context about brands, segments, technology and the like, to editors and writers. So, adding up the loans I've had out of the press fleet and things I've driven at events, my tally for the year is 68 cars, as of this writing. Before the calendar flips to 2015, it'll be as high as 73. At one of the buff books like Car and Driver or Motor Trend, reviewers might rotate through five cars a week, or more. I know that number sounds high, but as best I can tell, it's pretty average for the full-time professionals in this business.