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9 Winners and Losers of 2019

January 7, 2020 by admin 2 Comments

Ram Trucks
Ram Truck brand sales topped 700,000 units sold for the first time in 2019.


It’s a wrap: 2019 is in the books. And if you’re thinking we’re a bit late sharing this information, hold on: the U.S. auto industry finished reporting its annual sales on Monday, closing out an extended period of news releases hyping the details.

We’ll cut to the chase and look at the winners and losers for the past year.

Winner: U.S. auto industry. This was supposed to be the year the industry fell below 17 million new light vehicles sold. Indeed, last year was also supposed to fall short. But neither year did. Yes, sales were down slightly year over year, by 1.6-percent, but managed to finish around 17.1 million units sold for the year. That’s five consecutive years of topping the 17 million mark. Importantly, there’s a chance we’ll see a sixth year for 2020.

Loser: American consumers. Stop right there: purchasing a new vehicle isn’t necessarily a bad thing. What’s problematic is the loan terms, which are averaging 68 months. Worse, is the availability of long-term loans of 72 and 84 months, respectively. That means there are a greater number of consumers paying for their new vehicle for seven years. What’s not always apparent are consumers rolling over their loan balances into a new loan. That’s a costly decision and very concerning.

Winner: Ram 1500 pickup truck. Yes, the Ford F-150 is the indisputable pickup truck king for four decades running. Indeed, the Ford F-Series recorded 896,526 units sold, down 1.41-percent versus the year earlier. The big news is the Ram 1500, which notched 633,694 vehicles sold, an increase of 18.01 percent. Not only is the Ram Pickup a big gainer, but it has displaced the Chevrolet Silverado as the number two seller in the U.S. Though Chevrolet has egg on its face by losing its place to Ram, GM still builds more full-size pickup trucks, selling 807,894 units of the Silverado and GMC Sierra combined.


Prius sales are falling, thanks in part to new models such as this Toyota Corolla Hybrid.

Loser: Toyota Prius Family. Hybrid sales continue to fall as fuel prices remain stable and well below historical highs reached in 2012 at $3.64 per gallon. With prices averaging $2.55 per gallon in December, models such as the Toyota Prius continue to lose appeal. Indeed, Prius sales fell by 20.84-percent in 2019 to 69,718 units. That’s less than half the Prius’ sold in 2012 and well below the peak 181K units purchased in 2007. Some of the sales have gone to other Toyota hybrid models as well as to new competitors, such as the Hyundai Ioniq.

Winner: Fiat Chrysler. The deal is all about done. That deal has Fiat Chrysler merging with the PSA Groupe to form the world’s fourth-largest automaker. FCA is a winner as it was the dream of its late CEO Sergio Marchionne to find a partner. The new company will realize economies of scale and be better positioned to work through vehicle electrification and autonomous driving, which are the two largest and costliest technologies of our time. Without a merger, FCA most likely would have been left behind.

Loser: Sedans. Remember when sedans (and coupes and convertibles) ruled the road? Sure, there were some pickup trucks and vans in the mix, but the family vehicle of choice was the sedan as well as its station wagon variant. Well, car sales continue to fall and now represent about one-quarter of the market. We said good-bye to the Chevrolet Cruze, Ford Taurus, and to the Hyundai Azera last year. Other Ford and Chevrolet models are also gone and the Volkswagen Beetle is no more. Likely, car sales will continue to fall for a few years before finally stabilizing. Manufacturers that stay in the segment may find the remaining market too good to ignore.


2019 Nissan Altima SR
Sedan sales are declining but new models such as this Nissan Altima are keeping the segment fresh.

Winner: Carlos Ghosn. The former Nissan and Renault CEO is now a free man. At least he’s freed from Japanese confinement as he snook his way out of the country and found his way to Lebanon. How he got there is a story for the ages and one that isn’t quite clear just yet. Regardless, Mr. Ghosn should stay out of jail as long as Lebanon ignores an international warrant and public opinion aligns with the executive as he tells his story. On the flip side, Nissan may prove the biggest loser, especially if the details of how it all went down raise serious questions.

Loser: UAW. The UAW appears the winner following a protracted strike with GM. Organized labor certainly looked strong as it kept GM plants shut for more than a month, representing the longest strike in nearly 50 years. The settlement yielded several gains for the rank and file, including forging a pathway to permanent employment for temporary workers. Also, GM created a shorter route to top-tier wages, agreed to keep open and transform one assembly plant targeted for closure, and maintained its strong health benefits for employees. So, how is the UAW the loser? The union failed to organize Volkswagen’s Tennessee plant, it remains shut out of Nissan factories in the U.S. and continues to lose members. Then there is the matter of a corruption scandal involving union brass. Several leaders accepted kickbacks from UAW vendors and contractors, enriching themselves at members’ expense. At least 10 individuals were involved, giving the UAW a black eye in the process.

Winner: New models. We like new and updated models. And we show our approval (or disapproval) in the way we carry out our purchase decisions. Several new models enjoyed success in 2019, registering big gains or significant sales as they debuted. Among them were the Audi Q8, BMW Z4, Cadillac XT4, Genesis G70, Nissan Kicks, and the Subaru Ascent. Other winners included the Ford Expedition, Honda Insight, Mercedes-Benz AMG GT, and the Mitsubishi Eclipse Cross.


The Audi Q8 debuted with robust sales to show for it.

2020 Auto Trends

We have a few predictions for 2020 to share, including our guess auto sales will narrowly top 17 million units for an unprecedented sixth consecutive year.

Further, we think the Chevrolet Corvette’s debut will be followed by announcements of even more powerful models. Moreover, Rivian Motors will get its first models to the market before the year closes, Ford and Volkswagen will form an alliance, and GM will not resurrect its Hummer brand. Lastly, Hyundai’s first pickup truck will arrive, Ford will keep the Mustang name on the Mach-E electric crossover, and Jeep will unveil its full-size SUVs.

Filed Under: Special Tagged With: AUTO TRENDS, CARLOS GHOSN, CHEVROLET CORVETTE, CONSUMERS, FIAT CHRYSLER, Loans, RAM 1500, SEDANS, Toyota Prius, UAW

Top Automotive Stories of 2019

December 31, 2019 by admin 2 Comments


Every year has its big stories and the automotive industry has its share of blockbuster events. Throughout the year, Auto Trends Magazine followed the news and shared select stories here as well as through social media, especially via Facebook.

We’ve noticed a number of “year-end” articles emerging over the past few weeks and are adding our own. Five seemed to catch the most attention from our followers, therefore we’ll explore what these were, but in no particular order. We’ll wrap things up with an honorable mention, then conclude with a few predictions for 2020 and beyond.

Fab Five

1. UAW Strike Labors On – The UAW, itself embroiled in scandal, went ahead and launched a protracted strike against GM. Originally expected to end within a few days, the strike lasted longer than a month, causing the longest shutdown in the past half-century. GM lost billions of dollars during the strike, agreeing to keep one plant open and save some jobs. We think the labor victory will ultimately prove shallow as it’ll force GM to find additional ways to save money long term, with job loss gradually increasing.

2. Carlos Ghosn Debacle – Is he guilty or not? Former Nissan CEO Carlos Ghosn was jailed in November 2018 for a variety of charges, including fraud. What was shocking wasn’t so much the alleged scandal, but how the Japanese justice system treated the former executive. Ghosn was isolated, often without legal representation, and the charges against him seemed stacked. On the next to the last day of the year, Ghosn flew to Lebanon where he most likely will stay and avoid a return to Japan. The story isn’t over yet nor are the many twists and turns that defined this relationship.

3. FCA-PSA Merger – One year after its Sergio Marchionne died, Fiat Chrysler Automobiles has fulfilled one of the CEO’s important goals: a full merger with another automaker. FCA, the product of a big merger earlier this decade, is set to join forces with France’s PSA Groupe to form the world’s fourth-largest automaker. The deal should conclude by late 2020, but we may not know for a few more years the status of various brands (including the eponymous Chrysler) and certain models (the Dodge Challenger and Charger, for example).

4. Introducing An All-New Corvette – We won’t see a new Corvette for a few months, as production was delayed due to the strike as mentioned in our first story. What’s significant about the Corvette is that GM will finally transition its sports car to a mid-engine layout. As a result, even the base Stringray will immediately become the fastest Corvette ever. Also of note is the base price, as that will come in at under $60,000. Soon after the new model arrives, we should hear about follow-up versions with more powerful engines and the lofty price tags to go with it.

5. Ford Adds an Electric Mustang – Ford’s Mustang is America’s pony car, but it will soon be joined by an all-electric SUV. The Ford Mustang Mach-E is its name, an all-new model built on a separate platform, but sporting the iconic model’s name. With many Mustang styling cues, the EV gives a connection to the coupe, but the resemblance ends there. We dislike Ford’s decision and have followed the anger of Mustang faithful, including some who feel deeply betrayed. There’s still time for Ford to change the name, but we doubt it will.

Honorable Mention

Among the other stories of note for 2019 include Nissan’s drop in market share, the Tesla Cybertruck debut, the expanding financial backing for upstart Rivian Automotive, the electric truck/utility vehicle maker, and the ongoing shift away from cars to crossovers and trucks.

Stories about driverless cars and full electrification dominated; we’re also on the cusp of seeing the first Chinese automotive brand arrive stateside.

Possible Scenarios

Looking ahead, we expect many of the current stories to play out, with perhaps a few twists along the way. Auto Trends expects another blockbuster merger announcement in 2020 with perhaps Volkswagen and Ford tying the knot. A suitor for GM seems possible, but will Hyundai/Kia make the bold move to acquire or will it allow a Chinese company to jump in first? Finally, we’ll continue to see more car models die, but a few will hang on and likely thrive in a smaller market.


See Also — Deal Undone: Fiat Chrysler Renault Merger

Image by Gerd Altmann from Pixabay

Filed Under: Special Tagged With: CARLOS GHOSN, CHEVROLET CORVETTE, FCA, Ford Mustang Mach-E, GM strike, MERGER, PSA Groupe, SERGIO MARCHIONNE, UAW

Ford Raises 2017 Michigan Investment to $1.9 Billion

March 29, 2017 by admin 1 Comment

Money, jobs, and a presidential tweet.

Watch or read the news and you may have a different take on a story compared to the person observing it with you. That’s nothing new, especially in the way stories are presented by various networks, newspapers, and individuals.

Three Michigan Plants

The Ford Motor Company announced on Tuesday its plans to invest additional money covering three Michigan plants, on top of the one plant it had previously targeted. The earlier announcement, made in January, was for $700 million and 700 new jobs at the Flat Rock Assembly Plant, while the latest plan adds an additional $1.2 billion and creates 130 new jobs, raising Ford’s new investments in Michigan to a grand total of $1.9 billion for 2017 alone. In all, 830 new Michigan jobs are on the way.

Ford says the investment comes as it seeks to strengthen two of its profit pillars — trucks and SUVs — as well as expand the company’s mobility initiative.

Ford Assembly PlantSo, here is how the $1.9 billion will be earmarked:

1. Flat Rock Assembly — In January, Ford announced a $700 million investment in its Flat Rock Assembly plant for “high-tech electrified and autonomous vehicles.”

2. Michigan Assembly Plant (Wayne) — Ford’s Wayne, Michigan, assembly plant will receive $850 million in upgrades to produce the Ford Ranger (2019) and the Ford Bronco (2020). Work begins next May to transform the plant, with plans to remove and install the tooling in just four weeks.

3. Romeo Engine Plant — Ford’s Romeo engine plant will benefit from an expansion to allow it to build engine components for several vehicles, including the Ranger and Bronco. The plant already produces engines for the Super Duty, E-Series, Ford Shelby GT 350 Mustang and Shelby GT350R Mustang, along with components for F-Series, Mustang, Explorer and Edge. Ford says 130 new jobs will be created to handle the expanded capacity.

4. Data Storage Expansion. The automaker’s data storage requirements are expected to increase sharply over the next four years. To handle the growth, Ford is investing $200 million to upgrade its data center for improved storage, processing, and integration of this data. A side benefit will enable Ford to introduce new mobility products and services.

“At Ford, we are investing aggressively in building on our strengths today – including trucks, vans, commercial vehicles, performance vehicles and SUVs – while at the same time growing our leadership in electrification, autonomy and mobility services,” said Joe Hinrichs, Ford president, The Americas. “As America’s top producer of automobiles, we are proud to be going even further in our commitment to invest in manufacturing here at home.”

Ford says it investments are supported by the automaker’s partnership with the UAW, as well as with federal, state, county and local governments.

“UAW-Ford is proud of the total investments in three of our Southeast Michigan assembly and engine plants, which will lead to stronger job security for our members and continued support for the surrounding communities,” said UAW-Ford Vice President Jimmy Settles. “Thanks to collective bargaining, the hard-working men and women at each of these locations will now reap the full fruits of their labor. We look forward to celebrating more product investment and job growth at each of our UAW represented facilities in the months and years to come.”


See Also — New Ford Super Duty F-600 Unveiled


President Trump Sends a Tweet

For a full day leading up to Ford’s announcement, news that something was brewing surfaced on media outlets online. Further, just hours before Ford released details of its plans, President Donald J. Trump tweeted — “Big announcement by Ford today. Major investment to be made in three Michigan plants. Car companies coming back to U.S. JOBS! JOBS! JOBS!”

The president has been pushing automakers to expand jobs stateside, giving him yet another victory lap to run.

Photo copyright the Ford Motor Company.

Filed Under: Automotive News Tagged With: data storage, Flat Rock Assembly, Ford Motor Company, JOBS, MICHIGAN ASSEMBLY PLANT, mobility, President Trump, Romeo Engine Plant, TWITTER, UAW

Buick Envision: Imported From China

December 7, 2015 by admin 3 Comments

Despite UAW protestations, GM will move forward with introducing the made-in-China Envision SUV, the eighth vehicle in this premium brand’s product line. The new SUV arrives next summer in time for the 2017 model year.

Buick Envision

The compact, premium Buick Envision SUV.

Chinese-built cars are here, but most consumers haven’t taken notice. Or at least they are in the dark about such models.

The 2016 Volvo S60 Inscription is one such model, an extended wheelbase version of this luxury sedan. Its not that Volvo has been trying to keep its importation a secret, rather the move to include Chinese-built vehicles is simply a natural progression in all things global manufacturing.

GM is about to bring one of its own products from China, the compact two-row Envision crossover SUV. The new model will slot between the tiny Encore and the midsize Enclave when it goes on sale next year, filling an important gap in Buick’s expanding product line.

It wasn’t too long ago that consumers were up in arms about automotive products imported from the largest consumer market in the world. After all, China is hardly a bastion of quality products, but automotive manufacturers have been working carefully to ensure what models are planned for overseas markets meet consumer expectations.

UAW Announces its Opposition

In any case, importing the Buick Envision isn’t without its risks or its opponents. Indeed, the UAW has taken exception to GM’s decision, issuing a statement on Dec. 4 deriding the move. Said UAW Vice President and Director of the General Motors Department, Cindy Estrada: “Today’s announcement by General Motors that they are importing the Envision from China is a slap in the face to U.S. Taxpayers and the men and women who worked so hard to save GM during its darkest time.”

Estrada and others have called on GM to build the Buick Envision in one of the automaker’s US facilities, but the company has declined. Notably, Estrada pointed to the Trans-Pacific Partnership (TPP) as one of the bugaboos of jobs for rank and file members, and perhaps the underlying reason for GM’s decision to not build the SUV here.

Summer 2016 Debut

Nevertheless, the Buick Envision is set to arrive stateside next summer and will have its North American debut next month at an auto show in Detroit. The new model is comparable in size to the Jeep Cherokee as well as the Ford Escape, two models from traditional American manufacturers built in the US.

The Buick Enclave has been warmly received in China, where it has been on sale for about a year. Through Nov. 2015, 127,085 units have been sold. Encore and Enclave sales combine to make 60 percent of Buick’s product total, reflecting a current consumer trend toward all things SUV.

Turbocharged Four-Cylinder Engine

Details about the US-spec Buick Enclave reveal that it will be powered by a 252-horsepower (260 foot-pounds of torque), 2.0-liter turbocharged, four-cylinder engine and will feature the brand’s first active twin clutch all-wheel drive system. Other features include IntelliLink telematics, active noise cancellation, LED daytime running lights and LED accent lights, standard 19-inch wheels, a Bose audio system, and three-zone climate control. Popular options include cooled front seats, a panoramic sunroof, and OnStar with 4G LTE and a built-in Wi-Fi hotspot.

Pricing details have yet to be announced. Buick says it will aim the standard front- and available all-wheel drive Envision at the Lincoln MKC, Audi Q5 and Acura RDX.

Eight is Enough?

With the Envision’s arrival, Buick’s product line will have eight models as the Envision follows the Opel-inspired Cascada to the market. A ninth model, the Buick Avenir, may yet be announced — a beautiful concept that would slot above the flagship LaCrosse sedan. However, the Avenir remains a concept — its styling cues will be shape the 2017 LaCrosse.

Filed Under: Automotive News Tagged With: 2017 MODELS, all-wheel drive, BUICK ENVISION, China, front-wheel drive, GM, SUV, TURBOCHARGED ENGINE, UAW

Return of the Ford Ranger?

August 27, 2015 by admin 2 Comments

Updated Aug. 27, 2015, to reflect information about a second model, the Ford Bronco.

Ford Bronco

Ford may build the Bronco (concept pictured) and the Ranger at its Michigan Assembly Plant in Wayne, pending talks with the UAW.

By now, you probably have heard reports that the UAW and the Ford Motor Company are actively discussing new products that may be manufactured at the Michigan Assembly Plant in Wayne, Michigan. Several of the current products, including the Ford Focus, are being moved out — possibly to Mexico where labor rates are inexpensive.

According to multiple credible sources, including the Detroit Free Press, one new product seems a strong possibility once small car production ends at the plant in 2018. And that would be none other than the Ford Ranger, a pickup truck last built and sold in the US in 2011, but currently available in more than 200 markets worldwide.

Michigan Made?

Ford RangerThe Michigan Assembly Plant has been a hot button in negotiations between Ford and the UAW as both parties seek to come to an agreement before the current four-year covenant expires on September 14.

The union wants Ford workers to receive a pay raise and it is also seeking to eliminate the two-tier pay system instituted in 2007. That system pays new workers $15.78 per hour initially, rising to $19.28 per hour after four years. Thus, moving the new workers to the current $28 per hour pay scale represents one key point in the negotiations. Preserving jobs is another essential point, something that would be accomplished by building the Ford Ranger in the states.

But building the Ford Ranger in Michigan means the union will most certainly have to work with the automaker to make that move worthwhile and profitable. Ford has long pointed to start up costs when explaining why the next generation and current Ranger would not be sold here. Others have contended that a unibody Ranger would not be appropriate in a segment dominated by body-on-frame pickup trucks. Only the Honda Ridgeline is a unibody model; all other competitors, including the Toyota Tacoma and Chevrolet Colorado are underpinned by a traditional truck chassis.

(See Also — Ram Gets a Midsize Pickup Truck)

Ford RangerFord Ranger fans should restrain their excitement, at least for now. A new Ranger does not offer hardly enough volume to keep a plant running, therefore the two sides must continue to negotiate in a bid to bring in another model line. [Update: Bloomberg Business reports that the Ford Bronco is also being considered and would be built at the same manufacturing plant]. Also, by the time the Ranger arrives, the small truck market may have shifted again. Moreover, with a Jeep pickup truck a distinct possibility, Ford may find the going especially rough.

About the Global Ford Ranger

Dubbed the “global” Ranger by Ford, the current model is larger than the previous generation compact model last produced at Ford’s Twin Cities Assembly Plant in Minnesota in 2011.

In Australia, where the Ford Ranger was designed and built, the current Ford Ranger is powered by a 2.5-liter, four-cylinder gasoline engine making 164 horsepower and 167 foot-pounds of torque. Ford also offers a pair of diesel engines, including low- and high-output versions of its 2.2-liter four-cylinder making 118 or 148 horsepower and 210 or 277 foot-pounds of torque. A 3.2-liter, inline five-cylinder diesel is also available and is rated at 197 horsepower and 347 foot-pounds of torque.

Ford RangerFord pairs theses engines with 5- and 6-speed manual transmissions or a 6-speed automatic transmission. The base gasoline engine and the high output diesel could make it in the US. Offer the 2.7-liter EcoBoost V-6 and you will have a pickup truck offering optimum wallop.

The global Ranger is available in double and super cab layouts — the super cab is essentially an extended cab design. Both 4×2 and 4×4 drivetrains are available. Maximum towing is a whopping 7,385 pounds.

Tipping the scales near 4,500 pounds, the double cab 4×4 truck measures 126.8 inches between the wheels and is 210.9 inches long by 72.8 inches wide by 71.5 inches tall. It comes equipped with ventilated disc brakes up front and drum brakes at the rear.

The front double wishbone suspension system is composed of MacPherson strut, coil spring, and hydraulic double acting shock absorbers. A leaf spring arrangement with hydraulic double acting shock absorbers constitutes the rear suspension.


See Also — Energized by the 2017 Ford Fusion Energi

Photos courtesy of the Ford Motor Company.

Filed Under: Automotive News Tagged With: CHEVROLET COLORADO, DETROIT FREE PRESS, FORD RANGER, MICHIGAN ASSEMBLY PLANT, PICKUP TRUCKS, Toyota Tacoma, UAW

Labor Bargaining Chip: The Made in China Buick Envision

August 25, 2015 by admin 1 Comment

GM and the UAW are at the negotiation table with both parties seeking the upper hand with the next labor contract. A new bargaining chip, a Chinese-built Buick Envision crossover, may give GM some leverage. Negotiations are expected to conclude in September.

GM sales are up nearly 4 percent through July, coming in slightly below the market’s 5 percent growth pace. Chevrolet and GMC combined are contributing to the pace, but the premium Buick and luxury Cadillac brands are down year-to-date, falling 3.1 and 2.4 percent respectively.

A highly competitive luxury market is one reason why both brands are down, but the most compelling reason is a lack of utility vehicle model lines. Buick has the diminutive Encore crossover and the large Enclave crossover, while Cadillac offers the compact SRX crossover and the king-of-bling Escalade SUV. On the other hand, the strongest mainstream and luxury competitors typically offer at least three or four utility vehicles (usually crossovers), providing more of the types of vehicles that customers want than what Buick and Cadillac presently offer.

Buick Envision

GM will rectify the crossover deficiency for both marques, but sooner with the Buick. That’s because the automaker has its eyes set on its Chinese manufacturing base to supply a midsize model, the Buick Envision. The new model may appear stateside as soon as next year, despite strong opposition from the rank and file.

Indeed, the UAW has said that it opposes GM importing the Envision, a model the automaker could build in the US. The union and the automaker are currently negotiating in a bid to hammer out the next four-year labor agreement. GM’s factory employees have not seen a raise in 10 years and are clamoring for a wage increase. At the same time, GM is hinting that more products may be imported from abroad with the possibility that some North American production could be shifted to Mexico, a NAFTA nation.

Importing the Buick Envision comes on the heels of Trans-Pacific Partnership (TPP) ratification in July. The TPP seeks to lower trade barriers, including tariffs, what union leaders have argued would be poorly enforced and lead to job loss. Importing the Buick from China would mean that American workers would not have the opportunity to build the vehicle, resulting in a loss of job opportunities.

GM, however, cannot delay for what would likely take much more time to build the Envision in North America and at a greater cost too. The tooling and suppliers are in place in China, and the crossover would only need to be modified to meet current American safety and emissions testing requirements. Some changes might also be handled at the port of entry.

Buick Envision

Although GM has not publicly committed to bringing the Buick Envision to US, the company is pleased that this model has caught on so well in China where it went on sale just over a year ago.

That US media sources are reporting on the vehicle possibly heading to the US also gives GM some leverage as it prepares for contract talks in September.

Specifically, GM has a few scenarios in mind for how they want the labor talks to proceed. The Buick Envision may be held as a bargaining chip as the UAW wants to both expand jobs and procure raises.

GM, however, will continue to point to the labor advantage enjoyed by its foreign competition, specifically manufacturing plants in the southern United States owned by Mercedes-Benz, Hyundai, BMW, Kia, Toyota, Nissan and others. Look for the two parties to come to an agreement this September where either the pay is raised or more jobs are created, but not both.

From a customer’s standpoint, the Buick Envision fills a void in the brand’s lineup. The crossover sits on a 108.3-inch wheelbase, and is 183.7 inches long by 71 inches wide and 65.3 inches tall. Those dimensions parallel the Acura MDX, one of several models the Envision would most likely battle.

The Chinese-spec model is powered by a turbocharged, 2.0-liter four-cylinder engine paired with a six-speed automatic transmission. Front-wheel drive is standard; all-wheel drive is optional. A second powertrain choice, such as GM’s 2.5-liter four-cylinder engine used in the Chevrolet Malibu and Impala might also be considered. It is a normally aspirated engine at that.

As for bringing the Envision to the US, Buick spokesman Nick Richards told CNN, “It is all speculation at this point. To this point we haven’t disclosed any plans for it outside of China.”

Buick Envision photos courtesy of General Motors Company.

Filed Under: Automotive News Tagged With: BUICK ENVISION, crossover, GM, LABOR CONTRACT, LABOR NEGOTIATIONS, NAFTA, SUV, TRANS-PACIFIC PARTNERSHIP, UAW

GM to Reopen Shuttered Spring Hill Plant

September 21, 2011 by admin 1 Comment

New midsize models to be built in Tennessee.

GM is returning to the plant that launched Saturn, a different kind of car company. Its Spring Hill, Tennessee, plant has been out of commission for the past few years, but will eventually reopen as part of the contract terms the automaker has agreed to with the UAW.

Spring Hill Returns

What mid-size models will make it to Tennessee have not been confirmed, but that may include the Chevrolet Malibu, Buick Regal and Buick LaCrosse. Those sedans have found a home at plants in North America, but if demand for the next generation Malibu surges, this model might find a second home in Tennessee. Automotive News [subscription required] reports that a pair of crossovers — the Chevrolet Equinox and GMC Terrain — could be built there as well.

Another plant, located in Wentzville, Missouri, will receive a $380 million upgrade. That plant, which will continue to build full-sized Chevrolet and GMC vans will be joined by a mid-sized pickup truck, likely the same vehicle GM introduced in Thailand in March 2011. That vehicle was not initially slated to be sold in North America, but will replace the Chevrolet Colorado and GMC Canyon once GM closes its Shreveport, Louisiana, plant in June 2012.

Truck Market

The small to medium truck market has fared poorly in recent years as larger pickups offer comparable fuel efficiency, much more capacity and start at prices not too far about smaller trucks. Sales of the Colorado and Canyon are up sharply this year, but the segment is still dominated by the Toyota Tacoma.

The UAW says that GM agreed to continue building full size Chevy and GMC pickup trucks at its Fort Wayne, Indiana, plant when the next generation model arrives in 2013. That plant will receive $230 million in upgrades. A new compact may be built at an unspecified plant too, with Automotive News speculating that the model is the three-door Opel Astra which would be sold here as a Buick.

Out of Mexico

And in a sign that some jobs sent beyond the U.S. eventually do come back, GM has agreed to add hundreds of jobs to three plants in Michigan, positions it had planned for Mexico, but reversed course and agreed to hire here. Each of these changes are part of GM’s latest collective bargaining agreement with the UAW, a four-year pact that still needs to be voted upon by the rank and file.


See Also — GM Touts Free Summer Plant Tours

Filed Under: Automotive News Tagged With: CARS, GM, MISSOURI, SPRING HILL, TENNESSEE, TRUCKS, UAW

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