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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.

5 reasons why GM is cutting jobs, closing plants in a healthy economy

DETROIT — Even though unemployment is low, the economy is growing and U.S. auto sales are near historic highs, General Motors is cutting thousands of jobs in a major restructuring aimed at generating cash to spend on innovation. It's the new reality for automakers that are faced with the present cost of designing gas-powered cars and trucks that appeal to buyers now while at the same time preparing for a future world of electric and autonomous vehicles. GM announced Monday that it will cut as many as 14,000 workers in North America and put five plants up for possible closure as it abandons many of its car models and restructures to focus more on autonomous and electric vehicles. The reductions could amount to as much as 8 percent of GM's global workforce of 180,000 employees. The cuts mark GM's first major downsizing since shedding thousands of jobs in the Great Recession. The company also said it will stop operating two additional factories outside North America by the end of next year. The move to make GM get leaner before the next downturn likely will be followed by Ford Motor Co., which also has struggled to keep one foot in the present and another in an ambiguous future of new mobility. Ford has been slower to react, but says it will lay off an unspecified number of white-collar workers as it exits much of the car market in favor of trucks and SUVs, some of them powered by batteries. Here's a rundown of the reasons behind the cuts: Coding, not combustion CEO Mary Barra said as cars and trucks become more complex, GM will need more computer coders but fewer engineers who work on internal combustion engines. "The vehicle has become much more software-oriented" with millions of lines of code, she said. "We still need many technical resources in the company." Shedding sedans The restructuring also reflects changing North American auto markets as manufacturers continue to shift away from cars toward SUVs and trucks. In October, almost 65 percent of new vehicles sold in the U.S. were trucks or SUVs. That figure was about 50 percent cars just five years ago. GM is shedding cars largely because it doesn't make money on them, Citi analyst Itay Michaeli wrote in a note to investors. "We estimate sedans operate at a significant loss, hence the need for classic restructuring," he wrote. The reduction includes about 8,000 white-collar employees, or 15 percent of GM's North American white-collar workforce. Some will take buyouts while others will be laid off.

Chevrolet Chaparral 2X Vision Gran Turismo could only work in a video game [w/video]

There's something wondrous about the Vision Gran Turismo series of concepts that has let companies go wild with completely imaginary concepts for Gran Turismo. For Chevrolet's crack at the idea, it has taken a page out of its performance past with the Chaparral Can-Am racers of the '60s and '70s, with its designers having reinterpreted that period look for the future of motorsports as the Chaparral 2X. In real life, the 2X looks even better than in earlier photos. The design takes inspiration from someone in a flying suit with head down and arms outstretched, an influence you can really see that in the vehicle's shape. The driver lies facedown inside with the instruments projected onto a visor. Unfortunately, the powertrain here is a complete flight of fancy and works purely in the video game world. It imagines a laser propelled by lithium-ion batteries and an air-powered generation to make 900 horsepower. The 2X has a theoretical top speed of 240 miles per hour and hits 60 mph in a lightning-quick 1.5 seconds. Scroll down to see the concept on video with Chevrolet designers describing their inspiration and read the company's full announcement. It's also downloadable in Gran Turismo 6. Chevrolet to Show Chaparral Vision Gran Turismo Concept Boundary-pushing, Chevy-powered race cars changed motorsports design DETROIT – When racers Jim Hall and Hap Sharp founded Chaparral Cars in 1962, few could have guessed how they would shake up the conformities of the racing world – and fundamentally change it. Through pioneering applications of aerodynamics and aerospace technology, and a partnership with Chevrolet Research and Development, Chaparral Cars advanced the science of racing cars. It also triumphed on the track over well-established sports car companies from around the world, using Chevrolet horsepower. It was that spirit of innovation that inspired the Chevrolet Chaparral 2X VGT concept race car developed for the Vision Gran Turismo project, which celebrates the 15th anniversary of PlayStation® racing game Gran Turismo by inviting manufacturers to give fans a glimpse into the future of automotive design. It will debut at the Los Angeles Auto Show, Nov. 19, and gamers will be able race the Chaparral 2X VGT following the release of an online update for Gran Turismo 6 during the holiday season.