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GM and Ford quarterly sales continue to slump in China

BEIJING — General Motors and Ford announced their quarterly sales in China fell, albeit at a slower pace sequentially, as the U.S. automakers were hit by a slowing economy amid the Sino-U.S. trade war. GM's vehicle sales in China for the quarter ended June 30 dropped 12.2%, while Ford's sales slumped by 21.7%. While GM also suffered from heightened competition in its key mid-priced SUV segment, Ford was hurt by the limited new models for customers to choose from. For the first quarter of this year, Ford's sales in China tumbled 35.8 percent while GM's skid 17.5 percent. Still, the numbers from GM, the second biggest international automaker in China by sales, and Ford portend more uncertainty for the industry which is trying to rebound from a downward spiral that led to its first annual sales decline last year in more than two decades. GM delivered 1.57 million vehicles in China in the January-June period this year, while Ford delivered 290,321 vehicles. China's factory activity shrank more than expected in June, highlighting the need for more economic stimulus amid higher U.S. tariffs and weaker domestic demand. Annual car sales in China fell last year for the first time since the 1990s, and they are expected to fall this year too. Sales tumbled 16.4% in May from the same month a year prior, the China Association of Automobile Manufacturers (CAAM) said. That marked the 11th consecutive month of decline and followed falls of 14.6% in April and 5.2% in March. U.S. car companies' share of total China passenger vehicles sales fell to 9.6% in the first five months of this year from 10.9% in the year-ago period, according to CAAM. Over the same period, German car makers' share has risen to 23.3% from 20.9% and Japanese auto makers' to 21.3% from 17.3%. CAAM is set to announce June sales next week, which industry analysts forecast will be negative.   New models In China, GM has a joint venture with SAIC Motor Corp, in which the Buick, Chevrolet and Cadillac are made. It also has another venture, with SAIC and GuangxiAutomobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of GM's affordable brand Baojun dropped 31.8% for the latest quarter. But luxury brand Cadillac's sales jumped 36.6%. GM sold 3.64 million units in China last year, down from 4.04 units in 2017. Ford makes cars in China through its joint venture with Chongqing Changan Automobile Co and Jiangling Motors Corp (JMC).

Cadillac developing stretched ATS-L just for China

To luxury automakers, long-wheelbase sedans are to China that crossovers and SUVs are to the US, so it isn't all that surprising any more when the latest sedan gets an extra couple of inches between the wheels to improve rear-seat comfort. According to Car News China, the next sedan to get the stretch will be the Cadillac ATS, which will increase the wheelbase by 10 centimeters (about four inches) to become the ATS-L.
Designed to go up against rivals like the BMW 335Li and the added-length Mercedes C-Class, the ATS-L will reportedly be built locally in China with an engine list that will grow as well. Currently, only the 2.0-liter turbo engine is offered in the ATS in China, but the ATS-L will get the full spectrum of ATS engines including the base 2.5-liter and the peppier 3.6-liter V6. This isn't the first time Cadillac has offered a China-specific stretched sedan either as the SLS dates back to 2006.

Johan responds to critics again about Cadillac's NY move

Cadillac's new President Johan de Nysschen has faced a fair amount of criticism since assuming his position at the head of the American luxury manufacturer. From the company's move to New York City to a controversial new naming scheme, the first few months of his tenure have not been smooth sailing. Now, the embattled exec is firing back against his critics, notably Automotive News Editor-in-Chief Keith Crain, in a new column running in AN.
De Nysschen countered Crain's claim that the move to the Big Apple, "can only mean that someone wants to live in New York."
"The relocation decision is entirely unrelated to the personal living preferences of any Cadillac executive. No corporation would tolerate such indulgence by its leadership," de Nysschen wrote. "It is about structurally entrenching a challenge to the status quo by reinforcing the psychological and physical separation in business philosophy between the mainstream brands and GM's luxury brand."