2012 Cadillac Srx Performance Collection on 2040-cars

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Even if GM does close all 5 of those plants, it'll still have too many

DETROIT — General Motors' monumental announcement on Monday that it will close three car assembly plants and two powertrain plants in North America and slash its workforce will only partially close the gap between capacity and demand for the automaker's sedans, according to a Reuters analysis of industry production and capacity data. Sales of traditional passenger cars in North America have been declining for the past six years and are still withering. After GM ends production next year at factories in Michigan, Ohio and Ontario, it will still have four U.S. passenger-car plants — all operating at less than 50 percent of rated capacity, according to figures supplied by LMC Automotive. In comparison, Detroit-based rivals Ford and Fiat Chrysler Automobiles will have one car plant each in North America after 2019. The Detroit Three are facing rapidly dwindling demand for traditional passenger cars from U.S. consumers, many of whom have shifted to crossovers and trucks. Passenger cars accounted for 48 percent of retail light-vehicle sales in the United States in 2014, according to market researchers at J.D. Power and Associates. This year, sedans will account for less than a third of light vehicle sales. That shift in turn has left most North American car plants operating far below their rated capacities, while many SUV and truck plants are running on overtime. The collapse in passenger-car demand is a challenge for nearly all automakers in the United States, including Japan's Toyota and Honda, which have the top-selling models in the compact and midsize car segments. Toyota executives said last month they are evaluating the company's U.S. model lineup. But Toyota also plans to build compact Corolla sedans at a new $1.6 billion factory it is building in Alabama with partner Mazda. The obstacles facing GM in its plans to close more auto factories became apparent on Tuesday as U.S. President Donald Trump threatened to block payment of government electric vehicle subsidies to GM. While it is not certain that Trump unilaterally has the power to do that, he made it clear he intends to use his office to pressure the company to keep open a small car plant in Ohio that GM says will stop building vehicles in March.

No, Eminem is not giving away the Cadillac Ciel concept, Facebookers

Damn it, Facebook people, stop being so gullible. When you see something on social media that requires you to share or like a status or page in exchange for a chance at winning something, it's almost always a hoax. This goes for iPads, or Bill Gates giving away cash or, yes, an Eminem fan page giving away a Cadillac Ciel. Now, normally we'd simply ignore this utter hogwash, but it's getting some traction on Facebook and, annoyingly, is beginning to clog our newsfeed. Ignoring the fact that the Ciel is a pure concept car that likely can't even be registered for regular use, there are more than a few things that should give this nonsense away as a hoax. First, Eminem has only ever gotten in bed with one automaker – Chrysler. It seems unlikely that he'd defect simply to give away a car on Facebook. Secondly, the page that is putting on the giveaway isn't even a verified page – Eminem's real Facebook fan page has 97 million likes, this one has 622,000. Third, a quick look at the caption for the Ciel's photo, shown above, reveals the sort of grammatical mess that no serious contest would allow. Take a look (sic implied throughout): "Only 24 Days Until Christmas, Can you Imagine yourself driving this Car? I'm about to make that happen, Its Official, I Will be giving away this 2014 Cadillac Ciel to one random lucky fan, all you gotta do is follow these three easy steps, Step 1) Share this photo, Step 2) Like my page, Slim Shady Step 3) Like this photo, Winner Will be picked On December 5th 4 Days Away, Good luck to Everyone!!" We reached out to Cadillac spokesman David Caldwell just for fun. Apparently, this photo and schtick pops up every few months with virtually the same text, only to vanish at the end of the "giveaway." You're as shocked as we are, right? So, once again folks, just because it's on the Internet doesn't mean it's true. If your friends, family and acquaintances are blowing up your Facebook feed and social network channels with this nonsense, be sure to set 'em straight with a link to this story – we're sure the real Slim Shady will appreciate it.

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.