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GM cutting Chevy Sonic, Buick Verano production by more than 20%

General Motors' Orion Assembly plant in Michigan is seeing even more production cuts this year to further reduce inventories of the Chevrolet Sonic and Buick Verano. These latest adjustments mean layoffs for about 100 workers in phases starting in July. "GM Orion Assembly will adjust plant production capacity to better align with market demand," the company said in a statement announcing the change. Through May, sales of the Sonic are down 28.5 percent to 29,082 vehicles, and the Verano is off 15.6 percent, with 15,279 sold this year. According to unnamed plant insiders speaking to Automotive News, the assembly rate is slowing at Orion Assembly from the current 33 cars an hour down to 26 an hour, a 21-percent reduction. GM is also reportedly going to keep the plant idle for three weeks during the normal summer shutdown, rather than the usual two. Earlier in the year, the factory was idled for two weeks due to excess supply of the Sonic and Verano. In March, it was closed again for several days for the same reason. The Orion Assembly plant is the future home to the line for the Chevy Bolt EV. GM Statement: GM Orion Assembly will adjust plant production capacity to better align with market demand. A phased layoff of approximately 100 employees will begin in July 2015 and conclude by year-end. Related Video: News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing Buick Chevrolet GM Hatchback Sedan buick verano orion assembly

GM re-recalls 11k SUVs

General Motors is recalling a bunch of previously recalled SUVs because, well, they still aren't quite fixed. The latest repairs are necessary on 10,974 SUVs in North America, including 9,932 in only the US. Affected models include the 2006-2007 Buick Rainier, Chevrolet Trailblazer, and GMC Envoy; plus the 2006 Trailblazer EXT and Envoy XL. While not listed by NHTSA, a statement by GM to Autoblog says the 2006-2007 Saab 9-7X and Isuzu Ascender are also affected. In these SUVs, it's possible that liquid could get into the driver's door master power window switch module and cause a short circuit. This could potentially lead to a fire, and owners are urged to park the vehicles outside until repaired. GM has been trying to fix this issue for years. It started as an investigation into fires, and that led to a recall for about 250,000 vehicles in cold-weather states. A nationwide campaign came in 2013 for 193,000 of them in the US. Last year, the automaker decided to replace the whole module as a repair. However in a recent investigation of these recalls, GM discovered that this latest group of SUVs never received the new part. According to documents submitted to NHTSA (as a PDF), "Some dealers incorrectly used the labor code associated with module replacement when, instead of replacing the module, they only added a protective coating to the module." To fix things this time, the models finally get the correct component. Related Video: GM Statement General Motors is recalling 9,932 older midsize SUVs in the U.S. because they were mistakenly excluded from an earlier recall. Certain 2006 Chevrolet TrailBlazer EXT and GMC Envoy XL, and 2006-2007 TrailBlazer, Envoy, Buick Rainier, Saab 9-7X and Isuzu Ascender vehicles may continue to have a condition in which the printed circuit board inside the driver's door may corrode and short if exposed to certain fluids such as melted snow containing road salt. GM is aware of four fires but no crashes, injuries or fatalities associated with the expanded recall. The total number of vehicles being recalled, including Canada, Mexico and exports is 10.974. Customers are urged to park these vehicles outside until repairs have been made. GM reported this recall to the NHTSA on September 23.

GM won't pay owners of recalled cars for lost value

Kenneth Feinberg, the man in charge of the General Motors compensation fund dealing with the its widespread ignition switch woes, has issued an informal, two-letter response to the plaintiffs in more than 70 lawsuits seeking redress for lost resale value of their Cobalts: "No." The cases were recently combined into one, but Feinberg told The Detroit News that the fund will deal "only with death and physical injury claims," and that "perceived diminished value" will get no consideration.
ALG, the firm specializing in establishing residual values, determined that Cobalt owners had lost $300 compared to the segment competition and doesn't envision any long-term effects from the recall situation. Feinberg's statement comes in advance of public details on how the compensation fund will work and adheres to GM's long-held position on the matter. The company has already asked a judge to throw out such suits using the pre-bankruptcy defense, even as it stopped using that defense in cases of injury and death.
With plenty of potential gain from the GM suit, however, don't expect the plaintiffs to give up yet. When Toyota was sued for the same reason during the unintended acceleration debacle, it eventually settled the case for between $1 billion and $1.4 billion just to get it over with. Since the 85 law firms involved in the Toyota litigation took home more than $250 million of that total, we shouldn't expect the attorneys to give up on a GM payout, either.