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May 2016: FCA wins, Ford and GM stumble on weak car volumes

The May 2016 sales numbers are in, and it looks as though FCA is getting some vindication for boldly cancelling two slow-selling car models. Meanwhile, Ford saw overall sales dip and GM's May volume took a big dive versus the same month in 2015. While Marchionne's decision to axe the Chrysler 200 and Dodge Dart has drawn criticism as being short-sighted, it's working for FCA so far. Although the Dart and 200 aren't out of production yet and no capacity has been shifted to crossover or trucks, May's numbers show that the emphasis on Jeep and Ram models makes sense right now. FCA's US sales rose 1 percent last month compared to May 2015, putting the year-to-date total at 955,186 vehicles, an increase of 6 percent compared to the same period last year. Standouts included the Jeep Renegade, Compass, and Patriot, and the Fiat 500X. Ram pickup sales were down 3 percent. And your fun fact is that Alfa Romeo sales were up precisely 10 percent, for a total of 44 4Cs sold versus 40 in the same month last year. At FoMoCo, the Ford brand took a hit to the tune of 6.4 percent from May 2015 to 2016, registering 226,190 sales last month. Lincoln showed improvement on its modest numbers, going from 9,174 to 9,807, a 6.9 percent increase. Overall, Ford was down 5.9 percent for the month to 235,997; despite the slump, year-to-date total Ford sales are up 4.2 percent to 1,112,939. Strong sellers included Escape, Expedition, F-Series, and Transit - big stuff. Most small and/or efficient models (Fiesta, Focus, Fusion, C-Max) saw sales slides. Fusion sales were also down, likely due to effects of model changeover to the freshened 2017 model. Ford has promised four new crossovers and SUVs by 2020 and if things keep trending this way the company will be able to sell them, but things could change in the next four years. GM saw the worst of it for domestic brands. Retail and fleet sales were down for each of the four divisions, with the May 2016 total dropping 18 percent to 240,450 vehicles. GM's year-to-date sales are down 5.0 percent in 2016 to 1,183,705. Both the Sierra and Silverado were down significantly, and the majority of Chevy, Buick, GMC, and Cadillac nameplates saw sales decreases, with both small cars and larger utilities included. Not even big stuff could help GM this month, it seems. We'll have more on the rest of the industry's May sales as those figures trickle in.

Cadillac SRX likely to see next-gen built in China

Here's some shocking news to no one: People love crossovers, including those living in China. Since introducing the Cadillac SRX there in 2009, the model's sales have gone through the roof. Now, the brand is considering moving some production of the next-generation model in China to eliminate import tariffs and make it an even bigger player in the market.
According to a recent report in The Wall Street Journal, the crossover is leading Cadillac's Chinese growth, despite its US-equivalent price of over $67,000 after the country's high import tariffs. The CUV's sales are up 23 percent there so far this year, and it's responsible for over 40 percent of the brand's sales. John Stadwick, General Motors' VP of sales, service and marketing in China, told the WSJ that GM could "very possibly" build the next-gen model there.
The SRX is Cadillac's golden goose in China, and it just keeps pushing the brand's sales forward. "It's the vehicle that took us out of being a small niche in the market," said David Caldwell, Cadillac Communications Manager, to Autoblog. Before the CUV, Caddy was selling a little over 20,000 cars a year there, but partially thanks to the crossover's success, the brand sold 50,000 vehicles last year and could reach 60,000 this year. "The SRX is the most popular Cadillac in that market," he said.

Cadillac calling in 4,900 CTS-V models for brake issue

General Motors is recalling just over 4,900 first-generation Cadillac CTS-V sedans built between September 6, 2003 and June 11, 2007. The affected vehicles are largely registered in cold weather states where rock salt is used on roads. The salt could corrode the front brake hose's fitting in the brake calipers, which could lead to a brake fluid leak, the National Highway Traffic Safety Administration's bulletin reads. Needless to say, that would make slowing down the Corvette-powered Caddy a challenge. The affected vehicles were registered and/or sold in the following states: Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin, and the District of Columbia. GM is set to begin notifying owners of the affected vehicles, who will need to report to dealers to have both front brake hose assemblies replaced. Repairs are, naturally, free of charge. Scroll down for the official NHTSA bulletin. Report Receipt Date: APR 15, 2015 NHTSA Campaign Number: 15V225000 Component(s): SERVICE BRAKES, HYDRAULIC Potential Number of Units Affected: 4,907 Manufacturer: General Motors LLC SUMMARY: General Motors LLC (GM) is recalling certain model year 2004-2007 Cadillac CTS-V vehicles manufactured between September 6, 2003, and June 11, 2007, currently registered, or originally sold, in Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin and the District of Columbia. In the affected vehicles, snow or water containing road salt or other contaminants may corrode the front brake hose fitting at the caliper. CONSEQUENCE: Corrosion may cause the brake system to leak which could lengthen the distance needed to stop the vehicle and increase the risk of a crash. REMEDY: GM will notify owners, and dealers will replace both front brake hose assemblies, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Cadillac customer service at 1-800-458-8006. GM's number for this recall is 15149. Note: This recall is an expansion of recall 10V-105. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.