GM Cuts Cadillac CT6, XTS, Chevrolet Impala, Cruze, Volt, and Buick LaCrosse
Will trim about 15 percent of its North American salaried workforce
General Motors will cut the Cadillac CT6, Chevrolet Volt, Impala, Cruze sedan and hatchback, and Buick LaCrosse from its lineup by the end of 2019 as part of a $6 billion cost-saving plan to prepare the automaker for a zero crashes, zero emissions, zero congestion future.
The Detroit-Hamtramck assembly plant that builds the Cadillac CT6 is devoting production of that luxury sedan through June 1, 2019, to the V-Series version powered by the marque's new 550-hp, 4.2-liter twin-turbo double overhead-cam V-8 engine. Production of the Chevrolet Impala also continues there until June 1, while the Buick LaCrosse and Chevy Volt end production at Hamtramck on March 1, 2019.
Cadillac "expects to meet sales demand" for the CT6-V Blackwing V-8 with production that has been allocated through next summer, a spokesperson told Automobile magazine.
The Chevrolet Cruze hatchback and sedan end production at GM's Lordstown Assembly in Warren, Ohio, on March 1 of next year, and production of the Chevy Impala and Cadillac XTS end production in the GM Oshawa, Ontario, Canada assembly plant in the fourth quarter of next year.
GM says it has no allocation of models for Detroit-Hamtramck, Lordstown, and Oshawa plants beyond the end of 2019. Under United Auto Worker agreements, these three plants are not yet determined to be closed after they have no products to build. The automaker also has left without allocation its Warren, Michigan, transmission operations building the six-speed automatic for front-drive cars, and its Baltimore operations building full-size pickup truck transmissions.
The early, unexpected demise of the CT6 will leave Cadillac with two car models. The new models include a replacement for the ATS, and both will be produced at GM's Lansing-Delta Township assembly plant in Michigan, a spokesperson confirmed.
The SuperCruise Level 2 autonomous system that made its debut in the CT6 last year will be added to future Cadillac models, and one of GM's Chinese assembly plants will continue to build the CT6 there for the Chinese market only after production ends in Hamtramck. GM's Chinese Cadillac plant has been the exclusive factory for the plug-in hybrid version of the CT6.
GM says it will cut about 15 percent of its North American salaried workforce, which comes to approximately 8,100 of its 54,000 white-collar employees. Globally, GM plans a 25-percent reduction in white- and blue-collar employees. GM will cut a total of 14,800 blue- and white-collar workers by the end of 2019, a number a spokesperson confirmed.
"Contributing to a cash savings of approximately $6 billion are cost reductions of $4.5 billion and a lower capital expenditure annual run rate of almost $1.5 billion," GM said in its press release.
"GM now intends to prioritize future vehicle investments in its next-generation battery-electric architectures."
That doesn't mean GM is planning to abandon the internal combustion engine, but that initial investments in modern gas and diesel engine technology, and the platforms that use them, have already been made. GM continues, "it is expected that more than 75 percent of GM's global sales volume will come from five vehicle architectures by early next decade."
Unlike the Ford marque, GM isn't getting out of sedans altogether. Past 2019 at least, it plans to continue production of the Chevrolet Malibu, Sonic and Spark, Buick Regal and the two new Cadillac sedans, as well as the Chevy Camaro and Corvette.