General Motors has been seeing sales of their passenger cars take a sharp drop as buyers latch on to crossovers, SUVs, and trucks. The first half of 2017 has seen GM's passenger car sales drop 19 percent. In June, passenger cars went into freefall with a 36 percent drop. This has General Motors making some drastic decisions in terms of products and production sites.
"We are talking to (GM) right now about the products that they currently have" at underused car plants such as Hamtramck in Michigan and Lordstown in Ohio, and whether they might be replaced with newer, more popular vehicles such as crossovers, said Dennis Williams, president of the UAW.
According to sources, GM is considering dropping six models after 2020. The models include,
- Buick LaCrosse
Cadillac CT6(See Update Below)
- Cadillac XTS
- Chevrolet Impala
- Chevrolet Sonic
- Chevrolet Volt
Four of the vehicles listed (LaCrosse, CT6, Impala, and Volt) are built GM’s Hamtramck plant in Detroit. According to suppliers, Hamtramack's production output for the first half of 2017 is less than 35,000 vehicles, down 32 percent when compared to the same time last year. Other GM plants are able to produce 200,000 - 300,000 vehicles in a year, putting Hamtramck in a dangerous spot.
GM must "create some innovative new products" to replace slow-selling sedans "or start closing plants," said Sam Fiorani, vice president of AutoForecast Solutions.
A possibility of a new product is replacing the Volt with some sort of utility vehicle boasting a plug-in hybrid powertrain according to sources.
UPDATE: “There is absolutely, if I could speak all capitals now, they’d be coming out of my mouth. There is absolutely no plan, at all, to cancel the CT6,” said Cadillac president Johan de Nysschen to Jalopnik when asked about this report from Reuters.
“That report came as a surprise to me, too.”
de Nysschen said the brand is planning to invest more into the CT6 in the coming years as it will play an important role in the coming years.
“The [CT6] forms a very important part of our product strategy going forward for the brand,” de Nysschen said. “The car also has a very major contribution to make to the shaping of brand perceptions, and the transformational process that Cadillac is undergoing as far as that is concerned.”