Analysts Expect GM To Make ‘Bold’ Moves In Cutting Its Car Lineup
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Earlier this year, a bombshell report claimed General Motors was beginning to study the elimination of various passenger cars from its portfolio. Notably, the Chevrolet Impala, Chevrolet Volt, Buick LaCrosse, Chevrolet Sonic, and Cadillac CT6 were named as potential loose ends ready for chopping. We should note, Cadillac President Johan de Nysschen rebuked the report and said there are no plans to kill off the CT6 sedan. However, the other vehicles named saw no defense from GM.
Now, analysts believe GM will have no choice but to consolidate its passenger car lineup as its North American factories go underutilized and build slow-selling sedans in a market eager for more SUVs, trucks and crossovers, according to The Wall Street Journal. GM currently operates 17 plants in North America. Five operate round-the-clock to build trucks and SUVs—the others remain under-used.
We’re beginning to see plants that once built only cars transition to multi-purpose facilities. For example, the Fairfax, Kansas, plant will add a Cadillac crossover to the production line, likely the Cadillac XT4. Right now, it builds the Chevrolet Malibu exclusively.
Analysts pointed to CEO Mary Barra’s willingness to shed losing operations as a factor in future product decisions. Barra pulled the plug on Australian manufacturing, exited India, Russia, and most notably, shed its money-losing European operations with the sale of Opel and Vauxhall.
“I would expect to see GM make some bold moves on their car lineup,” said Jeff Schuster, an analyst at research firm LMC Automotive.
The coming years will be key to understand GM’s strategy moving forward. Even if passenger cars die off, GM plans for 20 new battery-electric cars by 2023. Two of them will arrive in the next 18 months.
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The Impala actually sells quite well. GM would be stupid to get rid of it.
I feel the only reason they would chop it is because they want to add an all electric full-sized sedan with a Chevy badge. I agree it would be dumb to cut it now, as full sized sedans is considered to be a growing segment, but once they have an EV alt then they may force their own hand. But Why not have an electric Impala? Its a well know and loved Chevy Brand. They could get real geeked and turn the impala horns into lightning bolts on the emblem!
An EV Impala would be beautiful. I don’t really care much for the lightning bolt horns though, but the intent is nice. 😉
GM/Chevrolet doesn’t advertise the Impala – ugh! My ’15 Impala LTZ is a WONDERFUL car (better than the LaCrosse and XT5 … certainly their best sedan, and in the top three Chevrolet cars (among the Camaro and Corvette). I would have purchased an Impala previously, if it had AWD. If Chevrolet / GM does away with a four door sedan, I will have to seek another manufacturer.
I agree with others that the GM lineup has a lot of duplication. I am curious as to why the Volt is even mentioned. After driving several of them, I find them to be a great alternative to a regular gasoline sedan. It has all the technical features and does drive very well. I could see making the Volt a model all to itself.
That is the standard Bean Counter response, Stop doing the right thing, Stop making the cars people want, Give them what you want them to have, don’t be competitive in your leases, and when business falls off, say, No one wants those any more, then end it.
I saw the same thing with the end of the Fleetwood Brougham, and before they stole all that money going BK.
GM takes our residual from over 50% for 3 years, and drops it to 25%, we were still leasing cars. Then they took the interest rate, or more accurately, money factor, from about 1% to 25%. That did it, a previous lease that was $400 a month became $1500 a month. That pretty much ended business.
No one wanted the cars anymore (at those prices)
All this is engineered.
No one takes the credit for their screw up’s, or are they?
In eight years the CAFE standards are likely to be 54.5 MPG and cars will be needed to offset the thirstier trucks.
There is also the risk that fuel costs increase and curb truck sales.
I will bet that Honda and Toyota are not thinking of shrinking any of its passenger car models and culling GM cars will simply transfer customers elsewhere.
The technology to give those kind of economy numbers have been around for decades. For an example, look at GEET, gives something like 50 MPG with 0 emissions. Heck I built something that did that 30 years ago in my garage, put it on my lawnmower, ran and ran and ran. We learned how to do that in Chemistry class.
Don’t be telling me the only way you can achieve those CAFE standards are with smaller cars.
Trim the lineup – Chevy is ridiculous in the amount of models it carries.
Also, take a tip from Honda/Toyota: offer 2 or 3 trim levels and reduce the options to near-zero. Way too many variations. Simplify, which offers value and saves costs.
Mexico and China is where our cars will come from in the future. It seems like the Focus will becoming from China for its next-gen. And don’t expect the Japanese or Koreans to stand idle; they’re in process or ramping up car production in Mexico.
And you can thank Clinton for that.
I am sure that is the case, Closing US plants and importing cars from Mexico, and China etc. will do wonders for the US economy, greatly increasing the government spending on Social Programs. Lets see now, Workers earning some kind of income, paying taxes, vs laid off workers now out of the retirement program, and exhausting their benefits…
A Socialists dream.
But politics never enters into things does it?
Making Cars and Trucks in the US keeps us strong, the local taxes build schools, roads, parks etc. Also creates loyal customers and grows the business.
Very short sighted.
The world is made up of more than your own personal bank account.
These only thing moving off of dealers lot’s are crossover’s/ Suv’s and that’s these same for every body. Sedan’s are not selling in record number’s like they use too, no matter how low those prices are. Changes are going to have be made, and yes you do hear it at Toyota and Honda.
Why is that? The reason is that they listened to Washington, and made the cars too small for families. Sedans no longer hold the husband, wife, another couple, or Grand Kids. To carry around the family they had to resort to SUV’s Not because they wanted to, it was necessity.
Few at the factory figured it out, if they did, didn’t say anything.
Make a car large enough for the family, trunk big enough for luggage and golf clubs, Price it at reasonable levels (Objective) and sales will tumble like a Rock. Then the factory will say, NO one wants SUV’s any more.
Apostrophes are only used for possession, not plural words. It was painful to read your comment.
Only if you use it as a noun, they are not always tequired to be used that way, however you must know that, just choose to ignore what you do not like.
If gm build a full-size sedan that would fit a average size family, at a reasonable price people still wouldn’t buy it.
Untrue. I hear the same complaint from customers every day. GM does not listen.
Buy these impala sedan or buick lacrosse if want a car with AWD, and these way crash testing is good luck trying to get a larger car to pass. Think this 1990’s car prices, because nobody car’s are cheap.
GM is still laden with way to much bureaucracy . Back in the late 1970’s and early 80’s GM couldn’t build a small car that made money that anyone wanted and were complete junk . So GM after years of trying , conceded to the Japanese juggernaut Toyota and they have since allowed that segment to flourish under Japanese control .
Now we see the mid-size car segment sales plummet here in the states from the domestic car companies and Honda and Toyota continue to come out with cars like the Accord and Camry that are quality built hold top sales spots and are loaded with the latest safety features for a price the middle class want and can afford . And both companies have factories in this country building them .
So again GM is faced with a decision to cut production of some cars to focus on trucks and suv’s . Toyota and Honda couldn’t be happier to build for the mid size market .
Ford is now going to build all of their small to mid size cars in Mexico so they can make a profit on them . GM will hand over this segment as well .
GM will continue to build big cars here for awhile as each division needs their big car even though they don’t sell as well as in the past . Now as E-cars and hybrids start to gain traction the competition will be fierce even with CUV”s and SUV”s with almost every car manufacturer on the planet investing in this new technology .
GM is starting to become to big again buidling things their focus groups are telling them they want . And after it goes from one level of management to another it gets watered down and then the bean counters get to the program and we see what we are getting .
If GM doesn’t get it right with the re-invention of the automobile they are going to be in alot of trouble , and remember Mary B. is already asking for help from the Government .
Yes, Chevrolet has to many models and need’s to trim them out. Toyota and Honda has these same problem with there sedans not selling. Even a so call cheap price sells of sedan will be these same.
Cruze, mailbu, regal/lacrosse (china) is staying. Cadillac will have CT6, CT5, CT4 sedans. Yes Chevrolet have to many models, needed to thin it out and no gm is not cutting these whole line full of sedans. GM asked china for assist because if they are going to drop ice engine very soon they need something to pay these bills, ice engine’s pays these these bills.
Pay’s these bills, for went build these electric car’s. Gm is not cutting there whole sedan line.
again GM has their heads where the sun doesn’t shine –there are people who can’t get into suv’s don’t want to buy suv’s but will buy a sedan ..if gm kills them, what they will do is make Toyota , Honda . Mazda Mercedes , Bmw , sell more . But what maybe one road to take GM needs to trim model levels . but what do we know
Again, gm is not going to cut all of there sedans (Malibu/cruze/regal-liftback/wagon, lacrosse sedan) etc, Hell why don’t people get off there ass’s and go buy one and stop taking about it. Hell these impala/ sonic is already gone that’s a given, as I said before, to many models from Chevrolet. The volt will most likely be a all electric crossover. New regal-liftback will mostly take over these lacrosse. XTS already gone, Cadillac sedans will be :: CT6, CT5,CT4.
Sorry to hear this one; I finally bought a Chevy, when CR had such good things to say about the new (2014) Impala. A big, comfortable, powerful sedan, which I really love. I had hoped to see the new engine and transmission in the Impala, maybe with the 2019 or 2020 model year. If there truly will be no Impala then, I might be looking at the Avalon, or maybe Genesis. Disappointing…
Caving in to foreign competition to focus on a more profitable segment, shifting production to another country, it’s “deja vu all over again”. Or is there really going to be a major shift to high mpg alt. powered vehicles, that could backfire? Ask the magic 8-ball. BTW, I’m old, out of the loop and happy owner of an Impala LTZ and Cad XTS. Someone made a good point on downsized sedans steering people into suv/cuv.
I know a guy who has owned a Caddy for over 24 years, he always bought the largest sedan. His current car is a 2014 XTS, and it is way too small for him.
I would’ve loved to see an increase, even a small one, in the width and access height of the car for the refresh. The wheelbase on that car should’ve also been stretched further in the rear for a larger door, and higher belt line resulting in greater rear visibility.
The XTS was supposed to be the replacement for the DTS, yet with its shorter wheel base by 5 inches, 2 inches narrower, Less leg room, and the trunk has junk under the carpeted sides, taking away needed width were some of its failings.
It did not ride as smoothly as a DTS. The DTS came out with Garbage Continental Tires, which Continental had to pay GM to use, because they were not worth buying at any price.
It did have one thing that was worth the price of admission that was the Northstar engine. Every one I drove would get mid 30’s on the highway, until they started screwing with the final drive ratio.
That engine was the Very Best. Smooth and powerful, even in its 275 hp status. the 305 HP was overkill.
it was capable of over 700 hp without any special work, but Chevrolet did not want that to happen. The usual.