Playlist | Top auto news

More than nine decades after legendary General Motors CEO Alfred Sloan famously announced the automaker would sell “a car for every purse and purpose,” the company is downplaying that mantra in favor of an emphasis on crossover vehicles, SUVs, pickup trucks and a self-driving future.

In latest years, GM was criticized for not moving quick enough to introduce fresh crossovers and SUVs as consumers began to increasingly ditch cars. That has switched this year as GM has launched a fresh Chevrolet Traverse and the Chevrolet Bolt, an all-electric crossover launched last year that goes on sale nationwide on Aug. 1.

Now, the automaker is preparing to launch four fresh SUVs over the 2nd half of the year. They include the Buick Enclave, Buick Regal Sport X, Chevrolet Traverse and GMC Terrain.

While CEO Mary Barra has repeatedly displayed a preparedness to discontinue unprofitable operations, she stopped brief of confirming reports that the company is reviewing plans to eliminate as many as five cars from its lineup.

But Barra did say the company is “watching a smaller car segment” and is “well placed,” even if car sales proceed to fall.

«We have taken an over-the-horizon look at where that is going and we have very efficient architectures,» Barra said during a conference call with Wall Street analysts. «We can leverage that very effectively to be well-positioned as the market proceeds to convert.”

Barra made the comments after the company reported a 2nd quarter profit of $1.7 billion.

GM profit falls 42% to $1.7 billion in 2nd quarter after sale of European operations

Report: GM may eliminate up to six cars from lineup

A Reuters report last week speculated that GM could eliminate the Chevrolet Volt, Chevrolet Impala, Buick LaCrosse and Cadillac XTS and Cadillac CT6. Of those, GM has only directly disputed the CT6.

And while Barra did not directly address the report, GM has, over the past two years:

• Sold its languishing European division, reversing a decision Barra’s predecessor had made to keep the unit several years earlier.
• Ended sales in the disappointing India market and shed South Africa operations.
• Shut down a plant in Russia.

GM’s readiness to consider moving beyond the Volt – which was a source of much corporate pride for years, especially when the company was barreling toward bankruptcy in two thousand nine – illustrates the automaker’s renewed preparedness to do what’s best for the bottom line.

That includes sweeping cost cuts in latest years amid Wall Street requests for greater efficiency in manufacturing, procurement and engineering. The company is on track to meet its objective of slashing $6.Five billion in costs by 2018, Stevens said.

And Barra made it clear that GM could go further.

“You’re going to just see a continual cost efficiency improvement mindset at the company,” she said.

Barra said GM`s compact and midsize car platforms for the Malibu and Chevrolet Cruze, launched in 2016, are designed to last more than two product life cycles without being downright overhauled.

Much like Fiat Chrysler Automobiles, which eliminated the Dodge Dart and Chrysler two hundred last year, GM could eventually take a similar path.

“We will take production out to align supply and request on passenger cars wherever that request grounds,” GM CFO Chuck Stevens said.

Stevens also went to superb lengths on Tuesday to tell Wall Street that GM doesn’t have an inventory problem.

Critics in latest weeks have noted that GM’s inventory has ballooned to one hundred five days’ supply as of the end of June in the U.S. as auto sales have commenced to decline for the very first time in seven years.

That supply – a measure of how long a company’s inventory would last on dealer’s lots – is higher than any other automaker except for Mitsubishi and Volkswagen, according to Wards Auto. The industry average in June was a 74-day supply.

But GM said its inventory is part of a plan to build up its supply of cars and trucks as it prepares to launch a fresh pickup truck in 2018.

The company will need more inventory to get through a shutdown period at its truck plants as it prepares to launch that fresh truck.

“We built inventory in the very first half for our previously announced down time in trucks and SUVs in the 2nd half of the year,” Stevens said. We are committed to bring inventory in line with the industry by the end of this year.”

GM could cut cars, says it doesn t have an inventory problem

Playlist | Top auto news

More than nine decades after legendary General Motors CEO Alfred Sloan famously proclaimed the automaker would sell “a car for every purse and purpose,” the company is downplaying that mantra in favor of an emphasis on crossover vehicles, SUVs, pickup trucks and a self-driving future.

In latest years, GM was criticized for not moving quick enough to introduce fresh crossovers and SUVs as consumers began to increasingly ditch cars. That has switched this year as GM has launched a fresh Chevrolet Traverse and the Chevrolet Bolt, an all-electric crossover launched last year that goes on sale nationwide on Aug. 1.

Now, the automaker is preparing to launch four fresh SUVs over the 2nd half of the year. They include the Buick Enclave, Buick Regal Sport X, Chevrolet Traverse and GMC Terrain.

While CEO Mary Barra has repeatedly displayed a readiness to discontinue unprofitable operations, she stopped brief of confirming reports that the company is reviewing plans to eliminate as many as five cars from its lineup.

But Barra did say the company is “watching a smaller car segment” and is “well placed,” even if car sales proceed to fall.

«We have taken an over-the-horizon look at where that is going and we have very efficient architectures,» Barra said during a conference call with Wall Street analysts. «We can leverage that very effectively to be well-positioned as the market proceeds to convert.”

Barra made the comments after the company reported a 2nd quarter profit of $1.7 billion.

GM profit falls 42% to $1.7 billion in 2nd quarter after sale of European operations

Report: GM may eliminate up to six cars from lineup

A Reuters report last week speculated that GM could eliminate the Chevrolet Volt, Chevrolet Impala, Buick LaCrosse and Cadillac XTS and Cadillac CT6. Of those, GM has only directly disputed the CT6.

And while Barra did not directly address the report, GM has, over the past two years:

• Sold its languishing European division, reversing a decision Barra’s predecessor had made to keep the unit several years earlier.
• Ended sales in the disappointing India market and shed South Africa operations.
• Shut down a plant in Russia.

GM’s preparedness to consider moving beyond the Volt – which was a source of much corporate pride for years, especially when the company was barreling toward bankruptcy in two thousand nine – illustrates the automaker’s renewed preparedness to do what’s best for the bottom line.

That includes sweeping cost cuts in latest years amid Wall Street requests for greater efficiency in manufacturing, procurement and engineering. The company is on track to meet its aim of slashing $6.Five billion in costs by 2018, Stevens said.

And Barra made it clear that GM could go further.

“You’re going to just see a continual cost efficiency improvement mindset at the company,” she said.

Barra said GM`s compact and midsize car platforms for the Malibu and Chevrolet Cruze, launched in 2016, are designed to last more than two product life cycles without being downright overhauled.

Much like Fiat Chrysler Automobiles, which eliminated the Dodge Dart and Chrysler two hundred last year, GM could eventually take a similar path.

“We will take production out to align supply and request on passenger cars wherever that request grounds,” GM CFO Chuck Stevens said.

Stevens also went to fine lengths on Tuesday to tell Wall Street that GM doesn’t have an inventory problem.

Critics in latest weeks have noted that GM’s inventory has ballooned to one hundred five days’ supply as of the end of June in the U.S. as auto sales have began to decline for the very first time in seven years.

That supply – a measure of how long a company’s inventory would last on dealer’s lots – is higher than any other automaker except for Mitsubishi and Volkswagen, according to Wards Auto. The industry average in June was a 74-day supply.

But GM said its inventory is part of a plan to build up its supply of cars and trucks as it prepares to launch a fresh pickup truck in 2018.

The company will need more inventory to get through a shutdown period at its truck plants as it prepares to launch that fresh truck.

“We built inventory in the very first half for our previously announced down time in trucks and SUVs in the 2nd half of the year,” Stevens said. We are committed to bring inventory in line with the industry by the end of this year.”

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