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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.

GM puts e-commerce shopping in car dashboards

DETROIT — General Motors on Tuesday said it will equip newer cars with in-dash e-commerce technology, betting it can profit as drivers order food, find fuel or reserve hotel rooms by tapping icons on the dashboard screen, instead of using smartphones while driving. GM's Marketplace technology, developed with IBM, will be uploaded automatically to about 1.9 million model-year 2017 and later vehicles starting immediately, with about 4 million vehicles across the Chevrolet, Buick, GMC and Cadillac brands equipped with the capability in the United States by the end of 2018, GM said. GM will get an undisclosed amount of revenue from merchants featured on its in-dash Marketplace, Santiago Chamorro, GM vice president for global connected customer experience, said during a briefing for reporters. Customers will not be charged for using the service or the data transmitted to and from the car while making transactions, he said. "This platform is financed by the merchants," Chamorro said. GM will get paid for placing a merchant's application on its screens, and "there's some level of revenue sharing" based on each transaction, he said. It is too soon to say how much revenue GM could realize from the Marketplace system, he said. The GM Marketplace will compete for customer clicks and revenue with hand-held smartphones, which offer a far richer array of applications than the GM system will at the outset. Amazon.com is partnering with other automakers, including Ford, to offer in-car e-commerce capability through Amazon's Alexa personal assistant system. For example, GM will launch Marketplace with just Shell and Exxon Mobil icons in the fuel category. The only restaurant available for in-car table reservations at launch is the chain TGI Fridays, GM said. In addition, there will be apps for parking, and ordering ahead at coffee shops and restaurants such as Starbucks, Dunkin' Donuts and Applebee's. "We will be adding more vendors," with some coming in the first quarter of 2018, Chamorro said. In addition, he said GM plans to expand integration into its vehicles of music, news and other information services. GM also hopes to use its in-car Marketplace connections to expand purchases of products and services, such as additional access to in-car wifi, from its own replacement parts business and dealer network. Customers can "expect to see more service promotions coming through the platform," Chamorro said. Reporting by Joe WhiteRelated Video:

Why Buick's future lies in China

Back in the last half of 2008 and into 2009, when General Motors was looking at too much capacity for too few customers, when it was running out of money and needing to go to the governments of the US and Canada and to the UAW for financial support, its management team was pretty much instructed by the feds to focus resources on what would create the best likelihood for a return on the investments and guarantees that it was getting. Things needed to be cut, and not just the corporate air fleet. This led to the elimination of Saturn, Hummer and Pontiac and the sale of Saab to Spyker. What remained of GM's North American brand portfolio was Chevrolet, Buick, Cadillac, and GMC. (Oldsmobile had been shuttered in 2004.) There were a variety of opinions regarding which brands GM should keep/lose during the midst of the Great Recession. Some thought GMC should be axed, but then it was pointed out that GMC essentially produced high-content Chevys, which resulted in fantastic transaction costs. Lots of money in the back of those pickups. Others thought Buick should be eliminated. The rationale was: Chevy was the mass-market brand, Cadillac was the luxury brand, and GMC helped leverage the company's investment in trucks. (Yes, even back then the F-Series was winning the pickup sales race, so it was always a matter of adding Silverado and Sierra sales to show that GM was solidly in the game.) So what was Buick? Better than Chevy but not as good as a Cadillac? Somehow that doesn't seem to be a particularly aspirational position to hold. But Buick's identity didn't need to be worked out in 2008-09 because there was a single compelling reason to keep it: China. According to official GM history, Pu Yi, the last emperor of China, Dr. Sun Yat-sen, the first provisional president of China, and Zhou Enlai, a Chinese premier, "Either owned, drove or were driven in Buick automobiles." What's more: "According to statistics from the Shanghai government, in 1930 one out of every six cars on the city's roads was a Buick." Which is to say that Buick got to China early and has a major presence in that market. When the Regal Sportback and Regal TourX were being unveiled at the GM Design Dome the first week of April, Duncan Aldred, vice president of Global Buick, gave a briefing of Buick's place on the automotive landscape.