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Cadillac can't keep up with Escalade demand, can't move its sedans

No matter how much Cadillac revitalizes its lineup and its image, it seems that all consumers want is the Escalade. In fact, Automotive News reports that General Motors can't keep up with demand for the fullsize luxury SUV, despite sticker prices that start at over $70,000 and approach six figures at the top end of the spectrum. Contrast that with sedans like the ATS and CTS, which are far cheaper but which Cadillac hasn't been able to move fast enough to keep up with production, prompting both the manufacturer and dealers to offer substantial incentives to keep them from piling up. Cadillac had been resisting a price cut of the ATS or CTS, lest it hurt resale values – itself a factor that could explain consumers' reluctance to buy them in the first place – but been offering subsidized leases, discounted financing, rebates and cheaper options. Combined with incentives from individual dealers, according to AN, buyers can be looking at five-figure discounts on buying a new Cadillac sedan. And now, finally, it seems the CTS will indeed get a little bit off its bottom line. Yet GM has been producing the ATS and CTS at rates that their sales can't keep up with. The automaker was forced to idle the plant in Lansing, MI, where it assembles the ATS and CTS for six weeks starting this past December. And since it reopened late in January, it's been reduced to a single shift as dealers try to move the metal they've already got. Meanwhile the plant in Arlington, TX, that produces the Escalade and its Chevy and GMC siblings has been running on overtime, with three shifts throughout the week and even into the weekend to keep up with demand. Profitable as it's been for Cadillac and GM, though, the Escalade does not represent the future of where it wants to take the brand - separating the Escalade as almost a brand unto itself that's been left out of the company's new naming scheme. If only it could make its sedans as successful as its fullsize SUVs, it'll be all set.

The biggest gas-guzzlers of 2024: 'The Meanest List' is the opposite of greenest cars

In some circles — especially some automotive circles — bigger is better. This explains the Hummer, for example. In its so-called “Meanest List” of a dozen models, the American Council for an Energy-Efficient Economy (ACEEE) makes no apologies for berating “the worst-performing mass market automobiles” sold in 2024 in the U.S. The most diminutive car on the list is a Chevy Corvette Z06. At the top of this particular heap is the Mercedes-Benz AMG G63, a gas-powered SUV that the environmental agency says was “the worst-performing vehicle of the more than 1,200 models assessed by Greener Cars and has an annual fuel cost over $4,000.” Not to mention its MSRP of around $184,000. Rank Make & Model Powertrain Green Score MSRP Estimated Annual Fuel Cost* 1 Mercedes-Benz AMG G63 Gas 20 $184,000 $4,242 2 Ram 1500 TRX 4x4 Gas 22 $98,335 $3,819 3 Ford F150 Raptor R Gas 24 $79,975 $3,777 4 Cadillac Escalade V Gas 26 $152,295 $3,388 5 Dodge Durango SRT Gas 26 $74,995 $3,332 6 Jeep Wrangler 4dr 4X4 Gas 27 $35,895 $3,260 7 Jeep Grand Wagoneer 4x4 Gas 28 $91,945 $3,058 8 Mercedes-Benz G550 Gas 28 $143,000 $3,186 9 GMC Hummer EV SUV EV 29 $98,845 $1,746 10 GMC Sierra Gas 29 $37,700 $3,069 11 Chevrolet Corvette Z06 Gas 30 $114,395 $3,169 12 Mercedes-Benz Maybach S680 Gas 30 $234,300 $3,031 *ACEEE analysis using EIA data of the annual cost of driving 15,000 miles In terms of numbers, the dirty dozen of the meanest includes seven SUVs and three trucks. Lonely at the middle of the list is the sole electric, the GMC Hummer EV, which weighs in at 9,000 pounds. The council notes that “though EVs have lower emissions than similarly sized gasoline models, the Hummer demonstrates that size and efficiency, not just fuel source, are important factors in a carÂ’s environmental impact.” ItÂ’s also worth reminding prospective buyers that the average fuel cost of a vehicle on the “Greenest List” eats up only a fifth of the fuel cost of a vehicle on the Meanest List, “showing that greener options can also be more affordable.” The ACEEE also put out a "Greener List" of efficient gasoline and hybrid cars that don't require plugging in.  By the Numbers Green Cadillac Chevrolet Dodge Ford GMC Hummer Jeep Maybach Mercedes-Benz RAM Emissions Fuel Efficiency Green Automakers Truck SUV Electric Hybrid

GM struggles to sell small cars, plans to lay off 2,084 employees at two plants

Due to low demand for some of its vehicles, General Motors plans to cut 2,084 jobs at its assembly plants in Lordstown, OH and Lansing, MI. At the same time, the automaker also announced plans to invest approximately $900 million in three of its facilities – the Toledo Transmission Operations in Ohio, Bedford Casting Operations in Indiana, and Lansing Grand River in Michigan - for future products. GM will discontinue the third shift at both the Lansing Grand River plant and the Lordstown, OH plant. The Cadillac ATS, Cadillac CTS, and Chevrolet Camaro are made at the automaker's plant in Michigan, which currently has 2,700 employees. The move to eliminate the third shift affects 810 hourly workers, as well as 29 salaried employees, starting on January 16th. The plant in Lordstown, OH currently has 4,500 employees and makes the Chevrolet Cruze sedan. The plan to discontinue the third shift will affect 43 salaried workers and 1,202 hourly employees and will start on January 23rd. As Fortune points out, sales of the Cruze are down 20 percent through October, while sales of the Cadillac ATS and CTS were down 17 percent through the same period of time. In addition to cutting the third shift at both assembly plants, the automaker plans to invest a total of $900 million between three of its facilities for unnamed future products. GM's Toledo Transmission Operations will receive $667.6 million, the Lansing Grand River Assembly plant will receive $211 million, and the automaker's Bedford Casting Operations will get $37 million. Last year, GM cut roughly 500 jobs from its Orion Township factory due to slow sales of the Chevrolet Sonic and Buick Verano, with surging crossover and SUV sales as the most likely culprit. With GM posting much healthier sales figures for the Chevrolet Equinox and Cadillac XT5 compared to the ATS, CTS, and Cruze, it looks like compact SUVs are to blame for this year's layoffs as well. Related Video: News Source: Fortune, General MotorsImage Credit: REUTERS / Rebecca Cook Hirings/Firings/Layoffs Plants/Manufacturing Cadillac Chevrolet GM Coupe Sedan Lordstown Ohio