“GM is trying to stay ahead of a problem that’s just over the horizon,” he says. “And it makes a lot of sense to do that.”
That problem is the accelerating evolution of electric vehicle and autonomous-driving technology. And it’s threatening legacy automakers like General Motors with extinction.
It’s the reason why GM is sacrificing a number of underperforming sedans.
GM plans to halt production of the Cadillac CT6 and XTS, Buick LaCrosse, and the Chevy Cruze, Impala, and Volt hybrid vehicle, in a move that will idle five factories in Maryland, Michigan, Ohio and Ontario, Canada. The automaker hopes to boost its annual cash flow by some $6 billion, beginning in 2020, so it can increase spending on electric vehicles and autonomous-vehicle technology.