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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

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.

2019 Volvo V60 vs. wagon competitors: How they compare on paper

The next-gen Volvo V60 was finally revealed this week. The outgoing model has been on sale since 2011, getting a few minor updates along the way. The new model is based off Volvo's Scalable Platform Architecture that underpins other models like the XC90 and XC60 crossovers and V90 wagon. The V60 will launch with two engines, with a powerful hybrid coming sometime down the line. Since the last V60 hit the market, Audi, Buick and BMW have all released their own flavor of wagon. Like Volvo, BMW sells a traditional sedan-based model. Audi and Buick's wagons are both high-riding models with some very slight off-road pretense, much like Volvo's Cross Country models. We don't have details on the upcoming V60 Cross Country, but, even when accounting for ground clearance, the V60, BMW 3 Series Sport Wagon, A4 Allroad and Buick Regal TourX have a lot of overlap. Check out the specs breakdown below. Discover and compare other wagons and crossovers with our Car Finder and Compare tools. Engines, transmissions and drivetrains Out of the four wagons, the new V60 is the only one that offers two-wheel drive and a hybrid variant. The base V60 T5 uses a 250-horsepower turbocharged 2.0-liter inline four and sends power to the front wheels. Stepping up to the V60 T6 nets buyers an additional 66 horsepower thanks to a twincharged — supercharged and turbocharged — 2.0-liter and all-wheel drive. A T8 model that uses a 390-horsepower plug-in hybrid powertrain will be available soon. All V60s use an eight-speed automatic. The Audi, BMW and Buick are all powered by 2.0-liter turbocharged inline-fours. Additionally, the 3 Series has a 2.0-liter turbo diesel. All three wagons have standard all-wheel drive. The BMW and Buick use an eight-speed automatic, while the Audi sends power through a seven-speed dual-clutch transmission. As base engines go, there's a four-horsepower difference between the most and least powerful models, though the Buick wins out on torque. The V60 T6 matches the Regal TourX's torque figure and trounces every competitor's horsepower rating. The V60 T8 packs more power and torque than any of the competition. Cargo and interior space The outgoing V60 was on the small side for a wagon. This new model rectifies that a bit, though its 48.2 cubic-feet of cargo space with the second-row folded is still substantially smaller than the competition.