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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).

Steve Carlisle replaces Johan de Nysschen as head of Cadillac

Johan de Nysschen, a longtime automotive industry executive, is out the door at Cadillac after four years at the helm of GM's flagship luxury brand. Steve Carlisle will replace de Nysschen as General Motors senior vice president and president, Cadillac. Carlisle previously served as president and managing director of GM Canada. Travis Hester will replace Carlisle in that role, starting immediately. "We appreciate Johan's efforts over the last four years in setting a stronger foundation for Cadillac," said General Motors President Dan Ammann. That strong foundation is mostly seen overseas. Cadillac has seen record sales in China under de Nysschen's watch, but has continued to flounder in its home market of the United States with market share significantly lower than rival brands like Audi, BMW, Lexus, and Mercedes-Benz. Growth in the U.S. market is mostly happening with crossovers and SUVs, and Cadillac has been trailing its German and Japanese rivals on that front. The brand-new XT4 is seen as a big potential sales booster for the automaker, but its late arrival has already hurt the brand's sales figures here in America. "Looking forward, the world is changing rapidly, and, beginning with the launch of the new XT4, it is paramount that we capitalize immediately on the opportunities that arise from this rate of change," said Ammann. "This move will further accelerate our efforts in that regard." Carlisle will report directly to Ammann in his role as the head of the Cadillac brand. Related Video:

Cadillac Super Cruise needs subscription after free trial period

Not long ago, Motor Trend broke the news that Cadillac's Super Cruise is only free for the first three years, after which the Level 2 autonomy system moves to subscription pricing. MT's report came on the eve of 2018-model-year Cadillac CT6 buyers being asked whether they wished to retain access to their Super Cruise. A few days after that report, Cadillac said it would give those first-year buyers of the technology — "the helpful adopters" — another free year, so they'll need to make a decision in August 2021 along with the 2019MY CT6 buyers. After a bit of digging by other outlets, it seems Motor Trend broke the Super Cruise news primarily to members of the media (including us); the details in the report have been communicated to customers in fine print in at least two places. First, let's clarify that the subscription is for OnStar, not Super Cruise only. Cadillac has made clear since the beginning that the tech needs an active OnStar plan, a Wi-Fi Hotspot, a working electrical system, cell reception, and a GPS signal to work. Knowing that, and knowing OnStar is only free for one month on new vehicles — GM shortened the free trial last year from three or six months — before requiring a subscription, might have encouraged someone to ask the question before now (we didn't...). In response to Jonathan Gitlin at Ars Technica asking Twitter about who knew, Bozi Tatarevic responded, "It might not have been released in the press materials but I remember reading about it in the order guide documents for the CT6 and noting that it was tied to OnStar and would eventually require a plan that started at like $25 per month." And Tatarevic pointed to this snippet in The Philadelphia Inquirer review of the CT6 from 2018: "The Super Cruise feature is part of OnStar and is free for three years. OnStar advertises subscriptions from $24.99 to $59.99 a month." If Super Cruise is only free as long as OnStar is free, then new car buyers now will get the tech for one month. Owners who cancel OnStar or choose a plan that doesn't include Super Cruise will still benefit from adaptive cruise control and lane-centering.   The automaker hasn't said what Super Cruise pricing will be, but the OnStar site apparently reveals the answer. There are six plans listed on the Compare Plans page, but two are combinations of other plans.