1995 Cadillac Fleetwood - Nearly A Classic on 2040-cars

Auto blog

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.

2017 Cadillac XT5 shows off its new metal in LA

Cadillac is in the midst of a comprehensive production overhaul, and few of its new arrivals will be as pivotal as the new XT5. Replacing the old SRX, the XT5 was revealed in the metal here on the floor of the 2015 LA Auto Show. Joining the new CT6 under Caddy's new naming scheme, the XT5 represents GM's assault on German competition like the Audi Q5, BMW X3, and Mercedes GLC, Japanese rivals like the Lexus RX, Infiniti QX50, and Acura RDX, and its own cross-town nemesis, the Lincoln MKX. And to better fend off their advances, the new XT5 promises marked improvements over its predecessor in every way. The model you see here is, to our eyes, handsomer than the model it replaces, adopting the Art & Science brand's latest design cues. It offers a fresh cabin space loaded with the latest equipment. And it weighs a solid 278 pounds less than the outgoing SRX. Power still comes from a 3.6-liter V6, paired to an eight-speed automatic transmission with available all-wheel drive. 310 horsepower and 270 pound-feet of torque keep it going, which ought to help it keep pace with the competition. We're looking forward to seeing how it drives in due course, but in the meantime, you're invited to view our live photos from the floor of the Los Angeles Convention Center in the gallery above.

Cadillac's de Nysschen won't budge on raised pricing

According to new Cadillac boss Johan de Nysschen, it will take between 10 and 15 years to elevate GM's top brand, which was once hailed as "The Standard Of The World," back to prominence in the minds of American customers. And to hear the executive talk of it, the brand is going to have to be willing to see sales falter in the near-term before they recover:
"Either you have to bring your volume aspirations into alignment with reality and accept that you will sell fewer cars... Or you have to drop the price and continue to transact at the prices where you were historically... I think the logical conclusion is that it's better to build off a very solid base in terms of [product] credibility, charge a fair price for the car and realize you have to wait until the volume comes."
In other words, sales will fall before they rise, and the brand has to be okay with that. Notice, too, that de Nysschen speaks of "a fair price" for Cadillac cars and utility vehicles. In this case, "fair" means more than many of the brand's traditional buyers are accustomed to, and roughly in line with the brands and machines Cadillac believes it is competing against. For instance, the newly enlarged 2014 CTS carries a suggested retail price that is over $6,000 higher than it was in 2013, and some trim levels boast an even higher price premium over the models they replace.