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GM reports third straight sales drop in China in 2020

BEIJING — General Motors' vehicle sales in China fell 6.2% in 2020, as the U.S. automaker suffered a prolonged slowdown in the world's biggest auto market. GM, China's second biggest foreign automaker, delivered 2.9 million vehicles in the country last year, the company said on Wednesday, for a third straight decline in annual sales. But sales have been recovering in the second half of last year, up 12% between July and September and 14% in the final three months. GM has a Shanghai-based joint venture with SAIC Motor, in which the Buick, Chevrolet and Cadillac vehicle brands are made. It also has another Liuzhou-based venture, with SAIC and Guangxi Automobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of its Buick brand grew 4% on the year and Wuling rose 9%, the statement said. Luxury brand Cadillac's sales increased 8%. Sales of GM's more affordable Baojun brand dropped 33% last year, while sales of its mass-market Chevrolet tumbled 30%. GM's delivery of 2.9 million vehicles in China follows 3.09 million vehicles in 2019, 3.65 million vehicles in 2018, and 4.04 million in 2017, for a three-year decrease of 28%.

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.

Cadillac Escalade gets $10,000 discount to ward off Navigator

Cadillac is once again defending its full-size luxury Escalade SUV from assault by the hot-selling Lincoln Navigator, offering $10,000 discounts to some current customers to keep them from switching brands. The discount, reported by Bloomberg, applies to lessees of 2016 model-year Escalades, with a $7,500 discount offered to owners, through May 31. It's at least the second time GM has resorted to incentives to keep customers in its cash-cow luxury SUV since Ford launched the all-new 2018 Navigator late last year. In November, Cadillac offered a $5,000 discount on the purchase or lease of the Escalade to any buyer who traded in a 1999 or newer Lincoln model. Analysts have estimated that the Escalade produces nearly $1 billion in yearly profit for GM. Escalade sales were up 14 percent in March and 8 percent during the first quarter, with retail sales up by double-digit percentages in both periods, higher transaction prices and market share expected to climb by 2 percent year-to-date, according to GM. That's impressive for a vehicle that has received only minor updates since the current generation went on sale for 2015. While it still trails the Escalade in sales, the Navigator has been riding a 63 percent increase in deliveries this year, with new models lasting on dealer lots an average of only 10 days and average prices ballooning to $82,500, according to Bloomberg. Ford earlier this year announced it was pouring $25 million into its Kentucky Truck Plant in Louisville to boost production of the Navigator and Ford Expedition. You can read Autoblog's side-by-side comparison of the 2018 Escalade and Navigator with competitors including the Lexus LX 570 and Infiniti QX80. Related Video: Image Credit: Cadillac Cadillac SUV Luxury sales incentives lincoln navigator sport utility vehicle discount