GM: 2014 strategic plan announced in midst of managing recalls
Over 30 million vehicles recalled; sales target of 5 million units in China; focus on Cadillac
In 2014, General Motors (GM) was supposed to place an attack with its enhanced product lineups. However, there were recall issues with the ignition switches in February and thus, 2014 became the year where the automaker had to deal with recalls. Up to October, the cumulative total of recall cases was 75 and the number of vehicles that were subject to the recalls exceeded 30 million units. The Department of Justice (DOJ), Federal Bureau of Investigation (FBI), Securities and Exchange Commission (SEC), attorney generals in 48 states, and Canadian safety regulators are investigating the ignition switch recalls.
From January 15, 2014, GM's top management has changed from Chief Executive Officer (CEO) Akerson to CEO Barra, who became the auto industry's first female CEO. As soon as she was appointed as CEO, CEO Barra was summoned and severely condemned by Congress on the handling of the recalls. CEO Barra had a difficult start; however, she has been consistently handling the recalls thus far.
On October 1, CEO Barra announced the first strategic plan that was created by the new management team. She stated that GM will promote five business strategies that are customer-focused to become the most valued automotive company. The first of the five strategies is to lead product and technology development. In 2015, GM expects the percentage of global sales from new or refreshed vehicles within 18 months to be approximately 27%. The automaker aims to increase the percentage to 38% in 2016 and 2017, and to 47% in 2019.
GM's sales volume, including vehicle sales of SAIC-GM-Wuling Automobile (SGMW) in China, for the January to September 2014 period increased by 1.7% year-over-year (y/y) at 7.372 million units and the global market share decreased by 0.1% to 11.5%. GM's global sales volume (including vehicles from its affiliated company in China, SGMW) in 2013 was 9.72 million units with an increase of 4.5% y/y; however, it did not reach Toyota's 9.98 million units and Volkswagen's 9.728 million units and thus, it was ranked third. GM's global share in 2013 was 11.5%, which was the same as the previous year.
GM's sales for the January to September 2014 period increased by 1.2% y/y; however, the automaker's net profit decreased by 54.4% y/y to USD 1.96 billion due to the recall issues and stagnation of emerging markets. Sales in 2013 increased by 2.1% y/y and net profit decreased by 13.6% to USD 5.35 billion.
North American International Auto Show 2014:
GM displays variety with Corvette Z06, Cadillac ATS Coupe, and GMC Canyon
Beijing Auto Show 2014: GM introduces Cruze, TRAX production model, Baojun 610/730
Number of recalled vehicles exceeds 30 million units in January-October 2014
Ignition switch recalls turn into big issues
In February, GM announced that it will recall 1.62 million older vehicles with model years of 2003 to 2007, which are no longer produced, due to the faulty ignition switches. It is said that due to the poor torque performance of the ignition switch, the switch deviates from the "run" position and turns off, and the engine shuts down; this causes the steering wheel to become heavy and the air bags to become inoperable. This recall has become the serious issue due to the following findings. The responsible GM engineers had known about the defects and did not issue a recall. Due to the defects, the number of front collision accidents became 31 and the number of occupant deaths became 13. The responsible engineers had also committed perjury at the trial on the ignition switch accident and there were suspicions that there was a systematic cover-up.
Congress and NHTSA's reprimands, and GM's handling
In March, GM was asked by Congress and the U.S. Department of Transportation's (DOT) regulatory agency, National Highway Traffic Safety Administration (NHTSA), to provide information, and the DOJ also started the preliminary investigation of the criminal prosecution. Coincidentally, in March, DOJ ordered Toyota to pay a fine of USD 1.2 billion with a monitoring period of three years in the criminal prosecution where DOJ stated that there were issues with the recall information that the automaker provided. This court ruling shook the automotive industry. As GM's own way of handling the recalls, the automaker began an internal investigation. The investigation was conducted by Attorney Valukas, a former federal prosecutor who led the Lehman Brothers investigation. Furthermore, GM made an organizational change by creating a new vehicle safety chief position for recall measures. In April, GM established a compensation fund for the victims and entrusted it to Attorney Feinberg, a renowned lawyer. Attorney Feinberg was given the authority to determine the compensation, independently of GM. On the other hand, Congress ordered the recently-appointed CEO Barra to appear in a hearing and questioned her at the hearing. In June, GM submitted the Valukas Report and dismissed 15 employees.
Issues remain but handling of recalls settles
From August, the compensation fund started accepting claims from ignition switch victims and the screenings are proceeding smoothly. As of October 27, the compensation fund certified 30 deaths, which greatly exceeded the number that was given in the initial explanation by GM. On the other hand, the internal process for recalls was later revised and due to this revision, the number of recalls continued to grow. As of October 24, there were 75 recalls and the number of vehicles that were subject to these recalls exceeded 30 million units on a global basis. The DOJ, FBI, SEC, attorney generals in 48 states, and Canadian safety regulators are investigating the ignition switch recalls.
GM's major recalls
|780,000 vehicles to be recalled due to faulty ignition switches (February)||* On February 13, GM announced that it will recall a total of 780,000 vehicles due to the faulty ignition switches. The two models that are subject to the recall are the Chevrolet "Cobalt" with model years of 2005 to 2007 and the 2007 model year Pontiac "G5." * GM stated that it had known about the front collision accidents that was caused by faulty air bags. There were five accidents that caused the death of six people and 17 accidents where occupants were injured as the airbags did not deploy. This time, GM decided to issue a recall because the cause was determined. * As measures, the ignition switches will be replaced at car dealers; however, GM has warned not to attach anything to the key rings until the ignition switches are replaced.|
|Ignition switch recall to be expanded to 1.62 million vehicles (February)||* On February 25, GM announced that it will expand the recall of vehicles that are subject to the faulty ignition switches and globally recall 1.62 million units. Vehicles that were subject to the recalls were added upon proceeding with the investigations. * GM revised its report, stating that the number of front collision accidents where the ignition switch deviated from the "run" position and air bags did not operate will become 31 and the number of occupant deaths will become 13.|
|Three new recalls were announced; 1.7 million unit scale; warranty expense of USD 300 million to be recorded in the first quarter (March)||* GM is internally proceeding with the revisions of its past defect information. The automaker announced three new recalls on March 17. The number of vehicles that are subject to the recalls will reach a scale of 1.72 million units globally. * CEO Barra announced that GM will record a warranty expense of USD 300 million for the ignition switch recall and the three new recalls in the first quarter.|
|Vehicles subject to ignition switch recall to be expanded by 971,000 units (March)||* On March 28, GM announced that it will further expand the recalls of vehicles that are subject to the faulty ignition switches. Globally, the number of vehicles that are subject to the defects will increase by 971,000 units, which will make the total number of recalls for the faulty ignition switches to become approximately 2.59 million units.|
|New power steering recall was announced; 1.51 million unit scale (March)||* On March 31, GM announced that there were power steering defects and will globally recall seven models with 1.51 million units. * On March 17, GM announced that it will record a warranty expense of USD 300 million in the first quarter; however, the automaker later announced that it has revised the figure and increased it to USD 750 million.|
|Approximately 2.6 million vehicles to be recalled due to faulty lock cylinders; recall costs in first quarter to be increased to USD 1.3 billion (April)||* On April 10, GM announced that it will recall approximately 2.6 million vehicles (approximately 2.2 million vehicles in the U.S.) due to faulty lock cylinders. * GM will revise the additional recall costs for the first quarter upward from USD 750 million to USD 1.3 billion.|
|Approximately 3.0 million vehicles to be recalled due to five defects; USD 200 million for costs to be recorded (May)||* On May 15, GM announced that it will globally recall 2.99 million vehicles (approximately 2.7 million vehicles in the U.S.) due to five defects and will record USD 200 million for these costs in the second quarter.|
|2.59 million vehicles to be recalled due to four defects; costs in the second quarter to be increased to USD 400 million (May)||* On May 20, GM announced that it will globally recall 2.59 million vehicles (2.42 million vehicles in the U.S.) due to four defects. The automaker also announced that as associated costs with these recalls, it will increase its reserve for recall costs in the second quarter from USD 200 million to USD 400 million.|
|580,000 vehicles to be recalled due to four defects (June)||* On June 13, GM announced that it will recall the Chevrolet "Camaro" with model years of 2010 to 2014. The defect is that the position of the ignition deviates from the "run" position due to the driver's knee hitting the key fob and the power steering becomes inoperable. GM stated that it received reports of three collision accidents and four minor injuries. The number of vehicles that are subject to the recall is 511,528 units globally. In addition, GM announced that it has notified NHTSA of three recalls on the 11th. The number of vehicles that are subject to the three recalls are 69,839 units globally.|
|Six new recalls for 3.55 million vehicles were announced; recall costs in the second quarter to be increased from USD 400 million to USD 700 million (June)||* On June 16, GM announced that there were six new recalls and will recall a total of 3.55 million vehicles globally. Of the vehicles recalled, 3.36 million of them are for ignition switches. It is the same defect as the one for the Chevrolet "Cobalt" that was recalled in February where the ignition switch deviated from the "run" position when it was hit, which could cause the power steering to become inoperable. * GM has already recorded an additional USD 400 million as recall costs in the second quarter; however, the automaker announced that it will instead increase the recorded amount for recall costs to an additional USD 700 million due to these recalls. Combined with the USD 1.3 billion that was recorded in the first quarter, the additional recall costs in the first half of 2014 will become USD 2 billion in total.|
|8.45 million vehicles recalled due to six defects; recall costs for the second quarter increased from USD 700 million to USD 1.2 billion (June)||* On June 30, GM announced six new recalls. The number of vehicles that are subject to these recalls will be approximately 7.6 million units just in the U.S and approximately 8.45 million units globally. * Of these 8.45 million recalled vehicles, approximately 8.23 units are due to the faulty ignition switches. A total of nine models with model years of 1997 to 2014 are subject to the recall. * GM also announced that it will revise the additional recall costs in the second quarter from USD 700 million that was announced on June 16 to USD 1.2 billion.|
|820,000 vehicles recalled due to six failures (July)||* On July 23, GM announced six new recalls. The number of vehicles that are subject to the recalls will be 717,949 units in the U.S. and 822,685 units globally.|
|Cumulative total of recalls in 2014 became 75 cases and 30 million vehicles globally (October)||* On October 24, GM updated and announced its recall list for 2014. The number of recall cases became 75 and the number of vehicles that were subject to the recalls became 30 million units globally.|
Congress, DOT, and DOJ's actions and GM's handling
|House of Representatives asked GM and NHTSA to provide information (March)NHTSA also asked GM to provide information (March)||* The House of Representatives' Energy and Commerce Committee asked in writing (dated March 10) for GM and NHTSA to provide information on GM's ignition switch recall by March 25. * Focused on how GM performed investigations on consumers' frustrations and possible defects as far back as 2004, NHTSA sent a list of questions that was 27 pages long to GM and asked the automaker to provide answers by April 3. * NHTSA itself also has been subject to questioning by the House of Representatives' Energy and Commerce Committee on why NHTSA did not request GM for recalls.|
|Attorney Anton Valukas was appointed and internal investigation started (March)||* On March 10, GM appointed Attorney Anton Valukas, a former federal prosecutor who led the investigation on Lehman Brothers Holdings' bankruptcy in 2008, to conduct an internal investigation.|
|DOJ has also started preliminary investigation for criminal prosecution (March)||* It has been reported that DOJ has also started preliminary investigation, which is being led by the New York Southern District Attorney's Office from March 10. The investigation is on how GM handled the recall of the 1.62 million vehicles that also involved fatal accidents and the possibility of any criminal or civil law violations.|
|As a measure for recalls, Vice President of Global Vehicle Safety position was created and Jeff Boyer was appointed (March)||* On March 18, GM announced that CEO Barra created a new position, Vice President of Global Vehicle Safety, as a measure for recalls and Jeff Boyer was appointed for the position on the same day. Vice President Boyer will periodically report information on vehicle safety to executives, such as CEO Barra and the Board of Directors.|
|Attorney Feinberg has been hired to be in charge of compensations for recalls (April)||* On April 1, GM announced that it has hired Attorney Kenneth Feinberg to be in charge of compensation issues for accident victims of the faulty ignition switches. * Attorney Feinberg is a renowned lawyer that has proven credentials in major compensation issues, such as compensations for the victims of the September 11, 2001 terrorist attack, compensations for the BP Gulf of Mexico oil spill accident in 2010, and compensations for the Boston Marathon bomb incident.|
|CEO Barra testified at the Congress hearings (April)||* GM CEO Barra testified on the recalls of the faulty ignition switches at the House of Representatives hearing on April 1 and Senate hearing on April 2. * Because GM was facing a criminal prosecution investigation by the DOJ, CEO Barra's answers were discreet and new information was not provided; therefore, the CEO was questioned severely.|
|NHTSA testified on GM's recall issue (April)||* NHTSA testified on the recall of GM's faulty ignition switches at the House of Representatives hearing on April 1 and at the Senate hearing on April 2. * At the House of Representatives hearing, the House of Representatives questioned NHTSA, stating that the agency has a problem with its decision-making process, and even though NHTSA had the chance to execute investigations on the ignition switch recalls twice in 2007 and 2010, it did not do so. * At the Senate hearing on the second day, the Senate raised facts that NHTSA has a staff of only 51 people, who conduct failure investigations, and has a budget of only USD 1.01 million. The Senate questioned the agency for having an insufficient system.|
|Two engineers to be put on suspension (April)||* On April 10, GM announced that it will put the two ignition switch engineers, who were criticized for perjury at the Senate hearing, on suspension. The automaker made the decision based on the briefing by Attorney Anton Valukas, who is acting independently and in charge of the internal investigation.|
|Exemption from recall lawsuit was filed with the bankruptcy court (April)||* On April 22, GM filed with the bankruptcy court for exemption from the economic loss lawsuit that was related to the faulty ignition recall of old GM. The automaker stated that it went bankrupt in 2009 and should be relieved from the old GM's liabilities. * GM is actually trying to compensate the victims who were injured in the accidents that were caused by the defects. * If the bankruptcy court approves GM's filing and GM is relieved from the old GM's economic loss lawsuit that is related to the ignition switch, it will greatly help the automaker in terms of profitability. However, it will leave a stained image that GM did not settle its past lawsuit and fled from it. * The federal bankruptcy court postponed the decision to 2015.|
|NHTSA ordered GM to pay a fine of USD 35 million for the late recall reporting and to improve its work processes (May)||* On May 16, GM announced that it agreed with NHTSA to pay USD 35 million for not reporting on the faulty ignition switches in a timely manner. * Secretary Foxx of the DOT called out to the people and said, "We will strictly monitor the future efforts of GM on this matter; however, as the DOT, we would like you to support the "Grow America Act," which is a bill for Congress to increase the fine from USD 35 million to USD 300 million." * In addition to the fine, NHTSA stated that it has also ordered GM to make improvements on a wide range of internal processes.|
|Internal investigation results, Valukas Report, was announced and 15 employees were dismissed (June)||* On June 5, GM announced the internal investigation results on the ignition switch recall, which was prepared by Attorney Anton Valukas from Jenner & Block (an outside law firm), per GM's request. According to the the Valukas Report, it was not a systematic cover-up, but it resulted from the confluence of management's lack of ability and mistake in judgment. * Based on the results of the internal investigation, CEO Barra dismissed 15 employees and took disciplinary actions against five employees. * GM also announced that it will entrust the compensation program for victims of faulty ignition switches to Attorney Feinberg, whom is an expert on compensation issues.|
|NHTSA stopped charging GM fines of USD 7,000 per day (June)||* NHTSA had fined GM USD 7,000 per day from April 4 because the automaker did not provide enough information on the ignition switch recalls; however, on June 10, the agency stopped charging fines because it received a detailed internal investigation document, the Valukas Report, on June 4. * Apart from this USD 420,000 fine for the delay in providing information, GM and NHTSA agreed to having the automaker pay a fine of USD 35 million for not reporting on the faulty ignition switches in a timely manner. The payment of USD 35 million was due on June 13.|
|Started accepting claims for compensation fund from ignition switch victims (August)||* Attorney Kenneth Feinberg, who was entrusted by GM to independently manage the compensation fund, began accepting damage claims for ignition switches from August 1 to December 31. * The compensation fund will pay at least USD 1 million for each death. Surviving spouses and children will be paid USD 300,000. Furthermore, additional amount of compensation money will be paid, which will be based on the earning potential of the victim who died. * GM has reported that there were 13 death cases linked to the ignition switch recalls thus far. GM has allocated a fund of USD 400 million for compensation claims; however, it is expected that compensation claims may reach USD 600 million.|
|Compensation fund payment begins (from September)||* On October 27, it was announced that the compensation fund, which was entrusted by GM, has accepted 1,580 claims during August 1 to October 24. Of the claims, 193 of them were for fatal accidents. The compensation fund stated that it had approved 30 fatal accidents thus far. * The DOJ, FBI, SEC, attorney generals in 48 states, and Canadian safety regulators are investigating the ignition switch recalls.|
Source: GM press release
GM's strategic plan by new management team
On October 1, GM announced that the management team that is being led by CEO Barra will promote a customer-focused strategic plan to become the most valued automotive company at the investors' briefing. By executing the strategic plan, the company believes that profit margins can be improved to 5.8% in the third quarter of 2014 and up to 9% to 10% in early 2020s on an EBIT basis.
GM's strategic plan
|1. Lead in product and technology development|
|In 2015, GM expects the percentage of global sales from new or refreshed models to be approximately 27% within 18 months. GM aims to increase the percentage to 38% in 2016 and 2017, and 47% in 2019. GM has developed an innovative "Mixed Material Body Structure" that uses a patented welding technology for weight reduction. Furthermore, GM is also putting effort on the development of an autonomous driving technology.|
|2. Grow Cadillac business|
|In 2015, Cadillac will launch four new models, including the flagship model "CT6" that was recently announced in North America. Furthermore, Cadillac will start local production in China, which is believed to become the world's largest luxury car market in the late 2010s. In five years, Cadillac will launch nine new models in the Chinese market. The automaker will target expected sales of 70,000 units in 2014 to 160,000 units in 2018.|
|3. Continue growing in China|
|From 2014 to 2018, Chinese joint ventures will invest USD 14 billion and construct five vehicle production plants and two powertrain plants, which will support the vehicle sales of close to 5 million units per year. During this period, GM plans to launch 60 new models, including nine SUV models.|
|4. Continue Growing GM Financial|
|GM Financial will continue to invest to support GM's sales. At the end of 2014, GM plans to enter the growing Chinese market.|
|5. Deliver Core Operating Efficiencies|
|GM will strengthen its cooperation with suppliers, reduce platforms and pursue economies of scale on a global basis, and lower operating costs. GM expects that 75% of global production will be based on core platforms in 2015; however, the automaker will raise the percentage of global production that is based on core platforms to 99% in 2020.|
2014 sales slightly increase; U.S. and China cover slow sales in Europe and South America
Sales growth in the Chinese and North American markets contributed to the global sales in 2013. GM achieved its global sales target with a 4.5% increase and 9.72 million vehicles sold (vehicles from the Chinese affiliate, SAIC-GM-Wuling Automobile [SGMW], were included). Global market share was 11.5%, which was the same as 2012. North America's main models, the Chevrolet "Silverado" and GMC "Sierra" heavy-duty pickup trucks, were remodeled, but they were not able to increase the share. However, the new models are recognized and product competitiveness is improving.
GM's global sales for the January to September 2014 period increased by 1.7% y/y; however, market share was 11.5%, which was the same as 2013. Shares in South America and Europe, in particular, have significantly declined; however, shares in major markets, which are North America and China, have slightly raised GM's global sales.
In the North American market, 18 new/refreshed models were launched and 70% of the lineups were revamped in 2013, and enhanced product lineups were to place an attack in 2014. However, the ignition switch recall issue emerged in February and hit headlines as a big issue. There were concerns that sales would drop because of the damage to the image; however, it has not received a big blow from the recall thus far. GM has stated that the mass recall are for old (bankrupt) GM vehicles and the performance of new GM's new models have greatly improved. It can be said that this communication has succeeded.
GM's global sales and market share from 2011 to 2013, and January-September 2014
|（in 1,000 units)|
|Region||2011||2012||2013||Jan.-Sep. 2013||Jan.-Sep .2014|
|Sales volume||Market share||Sales volume||Market share||Sales volume||Market share||Sales volume||Market share||Sales volume||Market share|
|South America (GMSA)||1,066||18.8%||1,051||18.0%||1,037||17.5%||770||17.7%||642||16.4%|
|Of which China||2,542||n.a.||2,832||n.a.||3,156||n.a.||745||13.9%||850||13.6%|
Source： GM's press releases on Feb. 6, 2014, Feb. 14, 2013, Oct. 23, 2014
Profit for January-September 2014 sharply drops due to recall costs
Net profit in 2013 decreased by 13.6% y/y; however, sales increased by 2.1% and EBIT increased by 9.1%. Thus, profitability has not declined.
Sales for the January to September 2014 period increased by 1.2%; however, reserves to cover recall costs increased to USD 2.5 billion in total (USD 1.3 billion in the first quarter and also USD 1.2 billion in the second quarter were added). The cumulative total of vehicles that were recalled in 2014 exceeded 30 million units in October on a global basis, and profitability has been greatly damaged. Furthermore, Russian revenue deteriorated due to the Ukrainian crisis, Argentine and Brazilian revenues also deteriorated due to the slump in the economies, and there were exchange losses due to the decline in Venezuela's currency value. Profit in 2014 will be significantly decreased compared to that of 2013. However, with the exception of special items, North American profitability is robust and equity earnings of GM China, which is doing well, are also expanding.
GM's Financial Results from 2011 to 2013, and January-September 2014
|(in millions of USD )|
|2011||2012||2013||YoY 2012-2013||Jan.-Sep. 2013||Jan.-Sep. 2014||YoY Jan.-Sep. 2013-2014|
Source： GM's press releases on Feb. 6, 2014, Feb. 14, 2013, Oct. 23, 2014
GM's latest North American model plan
In 2013, GM launched 18 new models in the market and revamped 70% of the lineups. Product appeal of new models were significantly increased, the Cadillac CTS luxury vehicle was named as the U.S. Car of the Year (selected by Motor Trend magazine), Corvette Stingray sports car was named as the North American Car of the Year (selected by North American automotive journalists), and Chevrolet Silverado full-size pickup truck was named as the North American Truck of the Year. As it can be seen, GM vehicles have received recognition by journalists. In addition, the Chevrolet Impala full-size sedan received rave reviews by Consumer Reports.
Also in 2014, new models are being launched one after another. Of these models, the Chevrolet Colorado and GMC Canyon mid-size pickup trucks, which are being launched from October, are fuel-efficient and it is expected that these models will be able to compete with the new Ford F-150. Sales of large SUVs that are based on pickup trucks and were launched in the spring are strong and margin is large; therefore, they are significantly contributing to revenues.
GM's new models are recognized
In 2013, GM launched 18 new models; these new models have received recognition by automotive journalists for their power performance, riding comfort, and other features.
* The Cadillac CTS was named U.S. Car of the Year （agility, fun to drive, styling, and safety features).
* The Corvette Stingray was named North American Car of the Year (acceleration, handling, braking, controls, and performance for the price).
* The Chevrolet Silverado was named North American Truck of the Year (fuel economy, handling, access, and towing/payload capacity).
* The Chevrolet Impala received rave reviews by Consumer Reports （ride, handling, braking, quietness, and spacious cabin/trunk).
Latest model plan
|Launch timing||Model||New model description|
|2013||Chevrolet Corvette Stingray||* Sales of the 2014 model year "Corvette Stingray," which is a seventh-generation new sports car, began from September 2013. GM produced aluminum bodies in-house for the first time.|
|Cadillac CTS||* The Cadillac CTS is a mid-size luxury car that is produced at the Lansing Grand River plant in Michigan. Sales of the new sedan began in the autumn of 2013 as a 2014 model. It received the U.S. Car of the Year award.|
|Chevrolet SS||* The Chevrolet SS is a full-size RWD sedan. It is a rebadged model of the new Commodore that was developed by GM's Australian subsidiary, Holden, and is imported from Australia. Sales of the model began at the end of 2013 as a 2014 model year vehicle. It is equipped with a 6.2L V8 engine. Since the Australia plant will be closed in 2017, sales will stop in the same year.|
|Chevrolet Impala||* The Chevrolet Impala is a full-size sedan. Sales of the new model began in April 2013 as a 2014 model year vehicle. It came in two types of engines, a 2.5-liter 4-cylinder and 3.6-liter V6. In addition, a 2.4-liter 4-cylinder with eAssist became available at the end of 2013. In addition to the Oshawa plant in Canada, which also produces the previous version, the Detroit-Hamtramck plant in Michigan also produces the new model. In the Consumer Reports' initial evaluation, it received rave reviews for its riding comfort and handling.|
|Chevrolet Silverado, GMC Sierra||* The Chevrolet Silverado and GMC Sierra are full-size pickup trucks. The 1500 light duty (LD), 2500/3500 heavy duty (HD), and chassis cab models are available. The Silverado and Sierra are sister models. The Chevrolet Silverado was selected as the North American Truck of the Year.|
|2014||Cadillac ELR||* Sales of the Cadillac ELR, which is a new luxury plug-in hybrid (PHV) coupe, began from January 2014. The price of the 2014 model year vehicle, including shipping fee, starts from USD 75,995; however, the vehicle is subject to a USD 7,500 federal tax credit; therefore, the price will become USD 68,495. The price was set with Tesla's "Model S" (85 kWh type) price of USD 69,900 in mind.|
|Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, GMC Yukon XL, GMC Yukon Denali, Cadillac Escalade||* Sales of new large SUV models that are based on full-size pickup trucks began from the spring of 2014. Two types are available: standard size and long wheelbase.|
|Cadillac ATS Coupe||* In an aim to bring in young customers to Cadillac, sales of the "Cadillac ATS" coupe, which is a small luxury sedan, began in the summer of 2014.|
|Chevrolet City Express||* The Chevrolet City Express is a Chevrolet light van that is supplied by Nissan. After the vehicle is produced at Nissan's Cuernavaca plant in Mexico, it is modified at GM's Ramos Arizpe plant and shipped. Sales began in the autumn of 2014.|
|Chevrolet Colorado, GMC Canyon||* The Chevrolet Colorado and GMC Canyon are new mid-size pickup trucks that are produced at the Wentzville plant in Missouri. They will be sold in the autumn of 2014 as a 2015 model.|
|2015||Chevrolet Trax||* The Chevrolet Trax is a small SUV based on a subcompact car. It is a sister model of the "Buick Encore" that is being sold from 2013. Sales will begin around early 2015.|
|Chevrolet Cruze||* The new model of the "Cruze" compact sedan/global car is planned for launch at the end of 2015 as a 2016 model.|
|Chevrolet Spark||* The Chevrolet Spark is a four-seater subcompact entry model that will be imported from Korea. The new model is planned to be sold at the end of 2015 as a 2016 model. It is likely that the engine will be downsized from 1.2-liter 4-cylinder to 1.0-liter 3-cylinder.|
|Chevrolet Volt||* The Chevrolet Volt is a plug-in hybrid-only compact car that will be produced at the Detroit-Hamtramck plant in Michigan. The new model will be sold at the end of 2015 as a 2016 model.|
|Chevrolet Camaro||* The Chevrolet Camaro is a coupe-type sports car. It will be competing with Ford's Mustang and Fiat Chrysler Automobiles' Dodge Challenger. The current model is being produced at the Oshawa plant in Canada; however, production will be transferred to the Lansing Grand River plant in Michigan for the production of the new model that is to be sold at the end of 2015.|
|Cadillac CT6||* The RWD full-size sedan will be launched at the end of 2015 or early 2016 as a 2016 model and Cadillac's flagship model. It will be produced at the Detroit-Hamtramck plant in Michigan. In September 2014, GM announced that, as Cadillac's new naming strategy, the name of future new cars that are sold after the CT6 will be "CT + number."|
|Buick Midsize SUV||* The Buick midsize SUV is a mid-size crossover SUV that is positioned between the Buick Encore and Enclave, and is a sister model of the Chevrolet Equinox and GMC Terrain. In China, Shanghai General Motors Co., Ltd. (SGM) will sell the model as the Buick Envision at the end of 2014. In the U.S. it is expected that the model will be sold in the latter half of 2015 as a 2016 model. It is likely that the model will come with either a 2.5L 4-cylinder or 2.0L 4-cylinder turbo engine.|
Sales Forecast by LMC Automotive: GM's light vehicle sales to expand to 8.3 million in 2017
|(LMC Automotive, Quarter 3, 2014)|
LMC Automotive foresees GM global sales in 2014 will end up with a slight decrease of 7.6 million units due to the effect of Chevrolet brand deletion in Europe, sharp decline of Russian and Brazilian markets, and recalls in the US. (GM's global sales do not include the sales volume of SGMW's Wuling/Baojun brands in China.)
According to the forecasts of LMC Automotive, GM continues to regain its global footing, though problems that were not fully addressed with its European operations are still present. GM is continuing to work on a restructuring plan for the troubled Opel operations; to aid this, while increasing focus on the brand, GM has decided to pull Chevrolet out of the region by the end of 2015.
2014 performance has been overshadowed by numerous recalls in North America, most notably a faulty ignition switch that led to the recall of 2.6 million vehicles and an ongoing investigation by the US Department of Justice and the Securities and Exchange Commission on why it took 11 years to issue a recall.
In the long term LMC Automotive foresees sales increasing to 8.3 million by 7.1% from 2013 to 2017. Much of this improvement comes from more focus on compact segments in the face of fuel economy standards. GM's trucks will also drive gains for the manufacturer, and the newly redesigned models are on a shortened lifecycle to ensure they will remain relevant in the face of strong competition from Ford and RAM.
(The Global Car & Truck Forecast 2Q 2014 GM-2, and the U.S. Automotive Sales Forecast 1Q 2014 GM-1)
GM's light vehicle sales forecast by country by make (Top 10 countries)
|(Please click here for downloading sales forecast for major 54 countries.)|
|GM by Brands||Chevrolet||4,791,783||5,047,982||5,185,913||4,984,266||4,986,165||5,193,462||5,251,384|
|Source: LMC Automotive "Global Automotive Sales Forecast (Quarter 3, 2014)"|
|(Notes) 1.||Data indicates figures of only small-size vehicles, including passenger cars and light commercial vehicles with gross vehicle weight of under 6 tons.|
|2.||All rights reserved. Reproduction of any data will require permission of LMC Automotive.|
|3.||For more information or inquiries of forecast data, please contact LMC Automotive.|
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