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GM to idle car production at five factories as Americans continue CUV love affair

In case you needed another reminder that Americans have fallen out of love with sedans, General Motors today announced plans to idle five factories in January in a bid to cut its inventory to 70 days. Detroit-Hamtramck Assembly ( Buick LaCrosse, Cadillac CT6, Chevrolet Volt and Impala) and Fairfax Assembly in Kansas ( Chevy Malibu) will stop production for three weeks. Lansing Grand River ( Cadillac ATS and CTS, and Chevy Camaro) is going down for two weeks, while Lordstown, OH ( Chevy Cruze) and Bowling Green, KY ( Chevy Corvette) will go idle for a week each, Automotive News reports. GM's shutdown reflects a broader problem with the company's supply – at 847,000 vehicles, the company's supply increased unsteadily from a low of 629,000 units in January of 2016. That's more than a 25 percent increase in the past year. Citing information from Autodata, The Detroit News reports that at the end of November, GM had a 168-day supply of LaCrosses, 177 days' worth of Camaro, 170 days of Corvette, 121 days for Cruze, 119 days for ATS, 132 days for CTS, and 110 days of CT6. Meanwhile, inventory of the company's more popular vehicles is actually below the professionally accepted 60- to 70-day supply, The News reports. The Trax, Colorado pickup, and GM's full-size SUVs are sitting below 50 days and experiencing year-over-year sales increases. GM needs a rethink of its inventory levels, which is something that's apparently coming. "We're going to be responsible in managing our inventory levels," GM spokesman Jim Cain told The News. Another unnamed spokesman told Automotive News the company's day-to-day supplies would "fluctuate before moderating at year-end." But at least one analyst thinks this won't be the last time Detroit needs to stop production to level things out. "Incentives are elevated, residuals are declining, and rates are rising," Brian Johnson, an analyst with Barclays, told The News. "And while GM in particular may benefit in the months ahead from new product launches, it's important to recognize that GM's inventory is elevated at the moment, and it wouldn't surprise us if they need to announce another production cut – which could pressure the stock." Related Video: News Source: The Detroit News, Automotive News - sub. req.Image Credit: Paul Sancya / AP Plants/Manufacturing Buick Cadillac Chevrolet GM GMC Crossover SUV Sedan bowling green cadillac xt6 fairfax

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.

Weekly Recap: Lamborghini fires on all cylinders

Lamborghini added 192 technicians and specialists in 2014 as the Italian automaker expands under the ambitious growth strategy of parent company Volkswagen AG. The additional workers helped Lamborghini increase its sales 19 percent last year to 2,530 supercars, and further expansion is planned for this year. Lambo has added more than 500 people in the last four years, bringing its headcount to 1,175. "Lamborghini is undergoing a strong phase of growth in both sales and in terms of recruitment," CEO Stephan Winkelmann said in a statement. "We invest significantly in our people ... in 2015 we plan to hire further." The supercar maker's solid performance last year came during a time of transition. Lambo sold off the final 265 Gallardos, which were the brand's best-selling models ever. Its 10-cylinder successor, the Huracan, immediately filled the void. It garnered 3,300 orders, and 1,137 of them were delivered in 2014. The other Lamborghini, the 12-cylinder Aventador, saw its sales increase 13 percent to 1,128 copies. The sales leap comes as Volkswagen drives sales expansion across its portfolio of brands. The German carmaker sold 10 million vehicles around the world for the first time last year. Though Lambo will never make supercars in great numbers, it is expected to contribute to VW's bottom line through its image and profitable sales. Look for further growth this year, and a Super Veloce version (shown above) of the Aventador has already been spotted during testing. Lamborghini has been working on a sport utility vehicle for years, though the company has never publicly approved the project. It also showed a hybrid, the Asterion, at last year's Paris Motor show, suggesting the automaker is considering an electric future. Other News and Notes GMC ponders Jeep Wrangler fighter GMC is considering adding a competitor to the Jeep Wrangler and has discussed the idea with its dealers, according to the Wall Street Journal. Details of the vehicle are unclear, but the report suggested the vehicle could have cues from General Motors' old Hummer brand. The move would broaden GMC's lineup of trucks and SUVs and attract new customers. GMC sold 501,853 vehicles in 2014, making it GM's second-best selling brand. GMC had more volume than Cadillac and Buick combined, though it's still well behind Chevrolet's tally of more than two million vehicles. The notion of a "Wrangler fighter" could be a moving target.