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Cadillac and Buick boost GM's return to growth in China

BEIJING — General Motors on Monday said continued market recovery from the COVID-19 crisis helped its China vehicle sales grow 12% on year in July-September, marking the Detroit automaker's first Chinese quarterly sales growth in two years. The second-biggest foreign automaker in China by units — after Germany's Volkswagen AG — said on Monday it had delivered 771,400 vehicles in China in the third quarter. That followed a 5% fall in the second quarter, when parts of China were still emerging from virus-busting lockdown measures. GM has a Shanghai-based joint venture with SAIC making Buick, Chevrolet and Cadillac vehicles. It has another venture, SGMW, with SAIC and Guangxi Automobile Group, producing no-frills minivans and which has started manufacturing higher-end cars. Sales rose 26% for cars under its mass-market Buick brand in the third quarter versus the same period a year earlier, while those of premium brand Cadillac jumped 28%, GM said in a statement. Sales of its mass-market Chevrolet marque fell 20%. Sales of no-frills brand Wuling grew 26%, whereas those of mass-market Baojun vehicles tumbled 19%. "GM's compact models returned to four-cylinder engines and that helped sales growth," said LMC Automotive senior analyst Alan Kang, referring to an attempt to market cleaner but noisier three-cylinder versions. "Cadillac also has a more complete lineup this year." China's biggest automakers' association expects overall car sales to grow by double digits in July-September versus a year earlier. Makers such as Toyota, Honda and Geely saw sales jump in the just-finished quarter. GM has seen its China sales suffer in a crowded market and slowing economy. To revive its fortunes, it plans to have electric vehicles (EVs) make up over 40% of new models in the next five years in China, where the government promotes greener cars. The automaker's Wuling Hong Guang MINI EV, a micro two-door EV with a starting price of 28,800 yuan ($4,200), was China's biggest-selling EV in August. GM's sales fell 15% in 2019 from a year earlier to 3.09 million vehicles. The automaker delivered 3.65 million vehicles in 2018 and 4.04 million in 2017. Related Video:

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.

The syrupy sweet tale of the Pink Cadillac Margarita

In our last installment of the irregular and irreverent series on drinks loosely connected to – or named after – automobiles, we sipped a Taxi cocktail, which in its original form tasted a bit like a margarita infused with Blackjack chewing gum , except worse. This time, we explore mythos behind a drink so pink it usually doesn't make you stop and think. But that's what we're going to do. And, as always, enjoy cocktails (and reading about them) while you're not behind the wheel. Our brother lives in Detroit, where old American cars go to not die. On the streets of the Motor City, you will see all manner of holey-mufflered, salt-rotted, spring-sagging Big Three iron plowing along shoddily. Our brother's next-door neighbor is a connoisseur of such vehicles, and thus populates his driveway with a cache of Malaise Era Cadillacs. (His dog lives in one.) His latest addition, which our brother texted us a photo of recently while we were eating fish tacos in Los Angeles, is a Desert Rose 1977 Coupe DeVille (seen below). Since we're always thinking about cars or drinking (or both), and we were eating Mexican, this put us in mind of a cocktail our cousin's trashy bridesmaid made us try at her wedding in Charleston: the Pink Cadillac Margarita. Suddenly, we were thirsty. The Pink Cadillac Margarita is, quite obviously, a pink drink – a somewhat cloying, if deliciously chuggable concoction colored with a spritz of Ocean Spray, or Chambord liqueur if you're classy. Pink drinks get a bum rap. Blame it on the Cosmopolitan, and everyday misogyny, but many people find pink drinks frivolous. As expert drinkers, and drink experts, we would counter that the consumption of alcohol is, at its essence, about being frivolous. Never mind that the chemical is a depressive; Consuming it is about putting on your rose (or rose) colored glasses, and getting ready to make some mistakes. The Pink Cadillac is apparently so named not just because of its signature color and the irresistible musical connection between Cadillacs and pinkness (see: Aretha, Springstein, Natalie Cole). The moniker also derives from the quality of the ingredients – drawing on the historical expression "The Cadillac of..." to signify something top-shelf. "It's difficult to know quite how that name was derived," says Melody Lee, Cadillac's director of brand strategy.