GM top 5 failures in 2025

Worker Layoffs And Software Leadership Turmoil

GM had its fair share of job cuts this year. Production facilities such as Factory Zero and CAMI saw workforce reductions as the result of a shifting EV strategy, while white-collar cuts extended into engineering and software teams at locations like the George Innovation Center. The cuts weren’t unprecedented for the industry, but the manner in which the layoffs were executed drew significant criticism. Compounding the issue was apparent turmoil within GM’s Software and Services organization, with multiple high-level executive departures throughout the year underscoring potential instability in a division that GM has repeatedly positioned as central to its long-term strategy.

Parts Shortages And Supplier Struggles

Parts availability remained a chronic problem for GM in 2025. From truck production disruptions caused by component shortages, to extended waits for replacement modules and transmission-related parts, the issue repeatedly spilled over to customers and dealers.

L87 Engine Recall

By the numbers, GM didn’t fare nearly as badly as its Detroit rivals when it came to recalls in 2025, with 27 recalls total, as compared to 53 for Stellantis and a whopping 152 for Ford. However, the GM L87 engine recall stands apart due to just how critical this one engine is to The General. For those that don’t know, the L87 is GM’s flagship V8, deployed across the company’s big profit-generating trucks and SUVs. Not only did the recall impact customer confidence, but it also placed additional strain on dealer service departments already grappling with parts shortages.

Build Quality Issues Undermine New Launches

Quality concerns once again resurfaced in 2025, most notably with the launch of the new Chevy Traverse, GMC Acadia, and Buick Enclave. Reports of coolant leaks, transmission problems, and torque converter issues plagued early production units, forcing GM to issue multiple fixes and service bulletins. What’s more, Consumer Reports stripped several GM models of their “Recommended” status, citing owner-reported reliability problems.

Cadillac CT4 Fails To Find An Audience

Despite offering an engaging driving experience and a luxurious cabin, the Cadillac CT4 failed to find much market success this year, even though model variants like the CT4-V Blackwing were loved by the critics. Nevertheless, after seven model years with minimal updates and another disappointing sales performance in 2025, the CT4 is now set for discontinuation in 2026. Unfortunately, it’s a familiar story for Cadillac, echoing the fate of the ATS before it.

Source: GM Authority

Ford 'Supertruck' Reveal

Back in November, Ford announced that it would be unveiling a new "Supertruck" of some sort this month at its 2026 motorsports season launch event. It's unclear what this new vehicle might be, but the automaker did say that it's "an all-new Ford Racing production road car," which is slated to demonstrate "how deeply we’re integrating our racing innovation into the vehicles you drive every day. The racetrack is our ultimate proving ground, fast-tracking developments that will soon be under the hood and in the chassis of your next Ford."

Ford Mustang GT500 / Cobra Reveal

We've also known for quite some time that Ford is working on a successor of sorts to the Ford Mustang Shelby GT500, which could wear the Cobra name instead of carrying on with the Shelby-derived moniker. We could see this new model(s) as soon as January 15th during the aforementioned motorsports event, but it's likely happening at some point in 2026, regardless.

Ford Mustang Dark Horse Boss Reveal

The new GT500/Cobra could be joined by what's believed to be a second new pony car, which could wear the Dark Horse Boss nameplate and wind up more focused on track performance. In any event, it seems likely that Ford is cooking up two new Mustangs to slot in the lineup above the current Dark Horse.

North American Ford Ranger Tremor Debut

When the latest-generation Ford Ranger debuted for the U.S. market, it did so without the popular off-road-focused Tremor trim, though it did mark the American debut of the Ranger Raptor. Regardless, the Tremor is already on sale in markets like Australia, so it seems like it's only a matter of time before it joins the U.S. lineup.

Midsize Ford EV Pickup

We've known for quite some time that Ford is developing a new mid-size EV pickup, which will be the first underpinned by its new Universal EV Platform. We still don't know what this new model will be called, nor many details about it - other than the fact that it will utilize lithium-iron phosphate batteries and enter production in 2027 at the Louisville Assembly plant with a targeted starting price tag of $30,000

Source: Ford Authority

Hyundai Motor Group Executive Chair Euisun Chung has warned of a tough year ahead for the global auto industry, and said the South Korean automaker needs to upgrade its AI capability. In his New Year remarks, Chung warned that global trade tensions and intensifying competition would curb industry profitability, while geopolitical conflicts may impact operations in some regions, potentially leading to a suspension of business. “This will be the year when the crisis factors we have long worried about become reality,” Chung said.

Source: Bloomberg via Automotive News

Many auto dealers in the year ahead expect their dealerships will generate similar profits and carry a similar valuation as they did in 2025, but a growing number anticipate having a better 2026, according to survey data from Kerrigan Advisors. However, many dealers also felt stores representing certain brands were poised to decline in value — a bearishness which tends to correlate with the automakers dealers trust the least including Nissan and Chrysler-Dodge-Jeep-Ram, according to the 2025 Kerrigan Dealer Survey.

Source: Automotive News

High new-vehicle prices are down a bit from record highs, but they’re not going away. That’s the biggest reason annual sales of new light vehicles will stay in the current range of 15 million to 16 million in the near future — substantially lower than the pre-pandemic level of 17 million-plus, according to Cox Automotive. Cox Automotive reported the average new-vehicle transaction price in November was US$49,814. That’s up 1.3% versus a year ago, but down slightly vs. September 2025 at US$50,080, the first time the average topped US$50,000, according to Kelley Blue Book, a Cox Automotive company.

Source: Wards Auto

Nissan has revised its U.S. dealer incentive strategy for 2026 following mounting backlash from retailers who say the original program eroded profitability and imposed unrealistic sales targets. Concerns escalated late last year after a group calling itself Concerned Nissan Dealers circulated a critical letter that was shared with Car Dealership Guy News. The letter outlined dealer frustration with Nissan One, a stair-step incentive program launched in June 2025 to simplify bonuses and boost retail market share.

Source: CBT News

Mercedes-Benz will launch a new advanced driver-assistance system in the U.S. later this year that lets its vehicles operate autonomously on city streets under driver supervision. The system, which enables a vehicle to drive from a parking lot to a destination, navigating city intersections, making turns, and obeying traffic lights, is likely to pose competition to Tesla, the only automaker that offers a similar product, called Full Self-Driving, in the U.S. Mercedes’ system, called MB.Drive Assist Pro, has been on sale in China since late last year.

Source: Reuters via Automotive News

For consumers about to spend a large amount of money to purchase a vehicle, it’s a vital one. Which, in turn, makes it just as important for car dealers. The answer, according to the latest research from Deloitte, is the dealership at which the consumer goes for vehicle service. Deloitte’s 2026 Global Automotive Consumer Study found more American consumers have the most trust in the dealership that regularly services their vehicle than any other industry touchpoint, cited by 25% of those surveyed.

Source: Auto Remarketing

CarMax is lowering prices and margins while increasing marketing spending to boost used-vehicle sales heading into 2026. The retailer’s interim leadership says the adjustments aim to reverse declining unit sales and better align pricing with consumer expectations. The company reported third-quarter results for its 2026 fiscal year, ending Nov. 30, showing net sales and operating revenues of $5.8 billion, down 6.9% from the same quarter a year ago. Net earnings fell 50.4% to $62.2 million. Used-vehicle unit sales totaled 169,557, down 8% year over year. The average selling price increased slightly to $26,383.

Source: CBT News