DETROIT — General Motors will delete six sedans from its lineup as part of a companywide restructuring that will close as many as seven plants within and outside the United States and result in the loss of more than 14,000 jobs. Production of the Chevrolet Impala, Chevrolet Cruze, Chevrolet Volt, Buick LaCrosse, Cadillac CT6, and Cadillac XTS will end by 2020.
Ford Motor Co. made a similar announcement in April, pledging to discontinue every car but the Mustang and the China-built Focus Active. By August, recent implementation (and threatened escalation) of new tariffs had convinced the factory to cancel plans to sell the Focus Active stateside.
Both moves throw into sharp relief the industry’s embrace of the SUVs, CUVs, hatchbacks, and trucks consumers appear to prefer. Neither company has made any secret of its desire to stay ahead of the trends toward electrification and mobility.
Acting now will save GM $6 billion by the end of 2020, including $4.5 billion in cost savings alone, executives said.
“The actions we are taking today continue our transformation to be highly agile, resilient, and profitable, while giving us the flexibility to invest in the future,” said GM’s chairman and CEO, Mary Barra. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”
Originally posted on Auto Dealer Today