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GM cutting vehicle trim options to save money for electrification

Information continues to filter out about GM's plans based on comments the automaker made during its Capital Markets Day event in February. GM President Mark Reuss said the company's push to save money by rationalizing the number of build combinations will continue in 2020, carrying on the work done in 2019. As GM Authority covers, last year, the carmaker cut 3,500 components across model lines, a 12% drop in the number of parts it needed to stock in its plants. Reuss used the next-generation Chevolet Equinox and GMC Terrain as examples for more cost efficiencies, saying build possibilities — which include international markets and their options — will be cut by more than 50%, and use more shared parts. "We will reduce total trim levels on Equinox and Terrain from eight to six," Reuss said, "reduce engine variants from 11 to 5, reduce build combinations from more than 200 to less than 100 per program, and see significant cost savings of an already paid-for architecture that took the mass out, helping us self-fund electrification programs." GM will plow a large amount of the money it saves into its ambitious EV program. In 2017, the automaker said it intends to have 20 electric vehicles on the market by the end of 2023, some of which could be shared between brands. An automotive analyst at Seeking Alpha and a piece in Automobile attempted to put specifics to what we should expect. As Automobile points out, the first two EVs in the 20-car program are already on sale, being the Ariv Meld and Ariv Merge eBikes available in Belgium and The Netherlands. We've seen the Cruise Origin autonomous rideshare taxi, although we don't know when it will hit the road. The next three, which we should see in the metal shortly, are two Cadillac EVs and the GMC Hummer EV pickup. The Cadillac pair are expected to be sized like the XT4 and XT5, and along with the Hummer, should hit the market starting in late 2021.

Will attaching the electrodes re-animate Cadillac?

This announcement last week from General Motors —"Cadillac will be GM's lead electric vehicle brand"— followed quickly by the surprise reveal Sunday night of a Cadillac EV crossover, leads one to wonder whether this is a case of GM pulling out the defibrillator and hoping a full-on jolt of electricity will revive Cadillac from its ongoing diminution in the market. In 2018, Cadillac U.S. sales were 154,702 vehicles, which was down from the 156,440 it had sold in 2017. And the 2017 sales were down significantly from the 170,006 vehicles delivered by Cadillac in 2016. And that is down from the 175,267 sales of 2015. Sure, part of Cadillac's problem — one shared by some other OEMs — is that its sedans aren't selling. But if we put those to the side, realize that in 2018 sales of the venerable Escalade were down by 2.2 percent. Admittedly, that rig is a little old in the grille, and it's suddenly gotten strong competition from the Lincoln Navigator, so a sales decline isn't too surprising. But the XT5, the compact lux vehicle that was launched in 2016 as a model-year 2017 product, had an 11.3 percent decline in a segment that is doing nothing but growing. This is not promising. Although the argument at GM HQ might be that Cadillac can reinvent itself as a Tesla fighter, one of the things that isn't often noted about Tesla vis-a-vis other OEMs is that while sedan sales are generally down, Tesla, which had an estimated 2018 sales volume of 197,680 (according to Cleantechnica.com), made its numbers primarily with the Model 3 and Model S, both sedans, as it has just the Model X crossover. So it isn't just about vehicle architecture. It is going to take more than an electric SUV to change Cadillac's performance. But here's where circumstances can fall in Cadillac's favor. Scale can be highly beneficial to Cadillac versus Tesla. The Chinese market, even though it is weakening of late, will be largely predicated on "New Energy Vehicles," which means electrified and fully electric. And while Tesla only just now broke ground on a factory in China, LMC Automotive reports that as of December 2018, SAIC GM is already well-established there and is the third-largest vehicle manufacturer in China (behind SAIC Volkswagen and FAW Volkswagen). Cadillac is going to be able to take advantage of GM's global efforts in developing EVs, so soon the Cadillac showroom could be filled with an array of luxury EVs that may make even Tesla loyalists take another look.

2020 Cadillac CT5 debuts at N.Y. Auto Show as a proper sport sedan

The 2019 Cadillac CT5 is here, and it's not a tweener sedan. After having done battle with the luxury sedan world through cars that were either too large or too small, Cadillac is using the CT5 to take direct aim at the BMW 3 Series, Audi A4, Alfa Romeo Giulia and Mercedes C-Class. Specifically, the CT5 replaces the CTS, but takes on vehicles one class smaller than what the CTS did. So, let's take a look at what Cadillac is bringing to the table. To begin, GM knows it has a winner on its hands with the Alpha platform used on the CTS and ATS and the Camaro, so engineers adapted it to the CT5. This seems like a great start, because we all happen to love the driving dynamics from vehicles on this chassis. The wheelbase is a couple inches longer than the CTS, but the CT5 is a couple inches shorter in overall length. As a result, the wheels get pushed toward the corners of the car, leaving the CT5 with relatively short overhangs in the front and rear. It looks different than both of the to-be-discontinued Cadillac sedans, but we wouldn't call it revolutionary. The rear end isn't quite a "sportback," but it's a "faster" shape, eschewing a traditional sedan's long decklid for a sloping-roof look instead. This shape does come at the expense of rear seat headroom, but we'll dive into the interior later. We got a little preview of the powertrain setup before this official reveal, but details were scarce. The base engine is the recently new 2.0-liter turbo four-cylinder found in the Cadillac XT4. Just as it did in that vehicle, this engine makes 237 horsepower and 258 pound-feet of torque. While it might be down on power compared to the old 2.0-liter in the ATS (272 horsepower and 295 pound-feet) we found it to be incredibly smooth, refined and not lacking in thrust compared to the old unit. We're sure the four-pot will offer sufficient power for the CT5, but the 3.0-liter twin-turbo V6 is lying in wait. This engine makes 335 horsepower and 400 pound-feet of torque. Both engines are paired to a 10-speed automatic transmission and can be had in rear-wheel drive or all-wheel drive in every configuration. So yes, you can get the V6 with rear-wheel drive, thankfully. Cylinder deactivation is also equipped to both these power units — the four-banger is able to run on two cylinders, while the V6 drops to four. Cadillac was entirely transparent about its new pumped-in engine sound strategy, too.