2014 Chevrolet Cruze 2lt on 2040-cars

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GM profits threatened by glut of pickups

Automotive News reports that General Motors may slash production or ramp up discounts in order to deal with an oversupply of pickup trucks. GM currently has more than double the standard supply of pickups, and the vehicles are threatening to dampen the automaker's profits for 2013. Typically, automakers try to sustain a 60- to 75-day supply of vehicles, but GM is currently loaded with a 139-day supply, as of last month. At the end of November, the automaker was sitting on 245,853 units.
The manufacturer says that it will adjust production accordingly before laying any incentives on the profitable pickups. Even so, there's some concern that the inventory swell could hurt the roll-out of the next-generation Chevrolet Silverado and GMC Sierra. GM actually began slowly stepping back production in August, but it's clear the company will take further action as it heads toward the end of the year and into the next. Analysts predict the automaker could reduce pickup manufacturing by nearly half in the first quarter of 2013.
That still may not be enough to keep GM from laying extra cash on the Silverado and GMC Sierra. While the company's incentive spending was down in November compared to the same month in 2011, both the Ram 1500 and Ford F-150 saw double-digit percentage increases in sales last month while the Silverado and Sierra numbers slid compared to a year prior. Incentive spending could help move more trucks and add some balance to the GM inventory surge.

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.

Chevrolet Malibu could last until 2024 before joining the dodo

Automotive News pieced together all available intel on the Chevrolet and GMC lineups, trying to ascertain how much life each model might have left. Concerning the Chevrolet Malibu, the answer is not too much, and the historic nameplate's final years don't look like the glory kind. After a major overhaul in 2016 boosted sales for the ninth-generation sedan to 227,881 units, the 2018 sales fell to 144,542, and this year's are down almost 15% through the end of June. The Malibu is one of two Chevrolet sedans still breathing - the other being the Impala for now - but only for about five more years. AN says there'll likely be a refresh in 2022, followed by a visit from the Reaper in 2024. After that, it could be "indirectly replaced" by an electric vehicle, one of the 23 EVs that GM is working on for 2023.     The Impala will meet the ax earlier despite a recent stay of execution. Production is still set to close in January 2020. In the entire GM stable, Cadillac might soon be the only marque with sedans. The Buick LaCrosse has a date with death, and Groupe PSA won't supply Opels-as-Regals forever.  The Sonic hatchback should say goodbye at the end of 2020, a year before the seemingly eternal Spark is thought to die. Two years after that, according to one report, the Camaro will go back into cold storage, perhaps forever, and AN says an "expected redesign of the car in 2021 was reportedly canceled." Finally, let's give one final shout-out to the Chevrolet Cruze, a global nameplate, which in the United States alone outsells the Malibu, outsold the Camaro by a factor of three last year, and absolutely trounces the Impala, Sonic, and Spark. Even that couldn't get a stay of execution. In more uplifting news, everything's happening on the crossover and truck side in the next few years. The Chevy Bolt is due for a refresh next year, even though it has "become more important for self-driving ride-hailing fleets that GM Cruise plans to operate than for consumers." In 2021, the Bolt-based crossover should bow, first in China, then here. It's said to look like "a mix of the Bolt and Trax" in spy shots. Still waiting for a green light: a possible subcompact GMC crossover called Granite that might make it to market by 2023. The full-sized SUV triplets Tahoe, Suburban, and Yukon could show their new faces in 2020. The Silverado might get an updated interior in 2020 or 2021, while the Colorado and Canyon mid-sized pickups won't get attention until perhaps 2023.