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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

GMC Hummer EV recalled over improperly sealed battery pack

Over 700 units of the GMC Hummer EV built during the 2022 and 2023 model years will be recalled due to an improperly sealed battery pack that lets water in. The firm issued a stop-delivery order at the same time as the recall, and it hasn't found how to fix the problem yet. Assigned recall number 22V-771 by the National Highway Traffic Safety Administration (NHTSA), the campaign includes 735 examples of the Hummer EV and 89 units of the BrightDrop Zevo 600 van. These two vehicles are pegged on opposite ends of the automotive spectrum, but they're affected by the same problem: "the high-voltage battery pack enclosure in some of these vehicles may not have been properly sealed," GMC notes, adding that "flanges on the battery pack enclosure may not have been properly primed or electrocoated." Water can wreak havoc in a high-voltage battery pack. GMC told NHTSA that it has found three EVs with this problem: an internal test vehicle that lost power while driving and two customer-owned vehicles that wouldn't start. As of writing, the firm is not aware of any accidents, injuries, or fires related to the issue, and GMC estimates that only about 1% of the recalled EVs are affected. GMC began notifying dealers of the recall in October 2022, and it plans to start reaching out to owners on November 28, 2022. However, a fix hasn't been found yet. In the meantime, the company issued a stop-delivery order and asked dealers not to attempt their own repairs. This isn't the Hummer EV's first run-in with water-related problems. In August 2022, General Motors voluntarily recalled 424 units of the Hummer EV and the Zevo 600 van due to a high-voltage connector that can prematurely corrode. The problem also let water leak into the battery pack, though it sounds like fixing it was reasonably straight-forward and involved applying sealant to the connector. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery 2022 GMC Hummer EV Edition 1 First Drive View 17 Photos Green GMC Hummer Truck Electric

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.