2013 Chevrolet Malibu Ltz on 2040-cars

Auto blog

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.

Submit your questions for Autoblog Podcast #323 LIVE!

We're set to record Autoblog Podcast #323 tonight, and you can drop us your questions and comments regarding the rest of the week's news via our Q&A module below. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
Discussion Topics for Autoblog Podcast Episode #323
Lamborghini Veneno

Question of the Day: What's the most irritating car name?

You hear a lot about how the Chevrolet Nova was a sales flop in Mexico because "No va" means "it doesn't go" in Spanish; in fact, the Nova sold pretty well south of the border, and in any case most Spanish-speakers know that "Nova" means "new" in Latin and Portuguese. However, General Motors doesn't deserve to be let off the hook for bad car names, because the Oldsmobile Achieva— no doubt inspired by the excruciating "coffee achievers" ads of the 1980s— scrapes the biggest fingernails down the screechiest chalkboard in the US-market car-name world. That is, unless you think Daihatsu's incomprehensible choice of Charade was worse. Meanwhile, Japanese car buyers could get machines with cool names like Mazda Bongo Friendee or Honda Life Dunk. It's just not fair! So, what car name drives you the craziest? Related Video: Auto News Design/Style Chevrolet Honda Mazda Daihatsu Automotive History questions car names