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GM earnings rise 1% as buyers pay more for popular pickups

DETROIT — General Motors said Thursday that higher prices for popular pickup trucks and SUVs helped overcome slowing global sales and profit rose by 1% in the second quarter. The Detroit automaker said it made $2.42 billion, or $1.66 per share, from April through June. Adjusting for restructuring costs, GM made $1.64 per share, blowing by analyst estimates of $1.44. Quarterly revenue fell 2% to $36.06 billion, but still beat estimates. Analysts polled by FactSet expected $35.97 billion. Global sales fell 6% to 1.94 million vehicles led by declines in North America and Asia Pacific, Middle East and Africa. The company says sales in China were weak, and it expects that to continue through the year. In the United States, customers paid an average of $41,461 for a GM vehicle during the quarter, an increase of 2.2%, as buyers went for loaded-out pickups and SUVs, according to the Edmunds.com auto pricing site. The U.S. is GM's most profitable market. Chief Financial Officer Dhivya Suryadevara said she expects the strong pricing to continue, especially as GM rolls out a diesel pickup and new heavy-duty trucks in the second half of the year. "We think the fundamentals do remain strong, especially in the truck market," she said, adding that strength in the overall economy and aging trucks now on the road should help keep the trend going. Light trucks accounted for 83.1% of GM's sales in the quarter, and pickup truck sales rose 8.5% as GM transitioned to new models of the Chevrolet Silverado and GMC Sierra, according to Edmunds, which provides content to The Associated Press. As usual, GM made most of its money in North America, reporting $3 billion in pretax earnings. International operations including China broke even, while the company spent $300 million on its GM Cruise automated vehicle unit. Its financial arm made $500 million in pretax income. Suryadevara said GM saw $700 million in savings during the quarter from restructuring actions announced late last year that included cutting about 8,000 white-collar workers through layoffs, buyouts and early retirements. The company also announced plans to close five North American factories, shedding another 6,000 jobs. About 3,000 factory workers in the U.S. whose jobs were eliminated at four plants will be placed at other factories, but they could have to relocate. GM expects the restructuring to generate $2 billion to $2.5 billion in annual cost savings by the end of this year.

Buick Cascada convertible likely dead after 2019

Opel announced it was discontinuing a few cars today, but the one that got our attention was the Cascada. The plan is to let the Opel Cascada live out its life until the end of 2019, with no replacement in the works. This brings into question the future of the Buick Cascada sold in the United States, since it's basically the same car and produced by Opel in the same factory in Poland. The Cascada has been on sale in other markets since 2012 badged as either an Opel or Vauxhall, but the Buick-badged car was only introduced in North America for the 2016 model year. Of course, Buick could decide to build the model beyond 2019, but it would need to find a new manufacturing location, convertibles aren't exactly popular, and the car would be egregiously old at that point. In other words, it looks like the Cascada is dead after 2019. We asked Buick what the game plan might be, and were told that there is nothing official to say at the moment. That's par for the course for something a manufacturer doesn't want to talk about yet, but it's also possible the announcement came as a surprise. Opel is no longer owned by GM, so the announcement actually came from the brand's new PSA ownership (the same French company that owns Peugeot and Citroen). As for the rationale behind the decision, that was a head scratcher, too. Opel/PSA said it was discontinuing the Cascada, as well as the subcompact Adam and Karl, in order to meet increasingly stringent emissions requirements and produce crossovers instead. This seems contradictory. Replacing a low-selling convertible and a pair of low-profit subcompacts with high-selling, high-profit crossovers sure seems like a solid business decision more than an emissions requirement one. Indeed, the Buick Cascada has never been a raging success in the United States either, with only 5,595 leaving the lots in 2017. It helped bring in some different kinds of customers to the Buick brand, but the impact is minute compared to a vehicle like the hot-selling Buick Encore. Related video: Featured Gallery 2019 Buick Cascada View 17 Photos Rumormill Buick Opel Convertible buick cascada

GM to add 1,200 workers at 2 Michigan factories

DETROIT — General Motors is adding 1,200 jobs at two Michigan factories to build midsize SUVs and two new luxury sedans. GM said Friday that its Lansing Delta Township plant will get a third shift and 800 more workers to build the Chevrolet Traverse and Buick Enclave SUVs, which have three rows of seats. The Lansing Grand River plant will get a second shift and 400 more workers to build two new Cadillac sedans, the CT4 and CT5. Employees laid off at other GM factories will fill the new jobs first, then workers will be added, GM spokesman Dan Flores said. The company has not determined yet how many new people will be needed, he said. Both additional shifts will start working sometime between April and June, the company said. Lansing Delta Township now employs about 2,500 salaried and blue-collar workers, while the Grand River plant has 1,400. GM sold more than 147,000 Traverse SUVs in the U.S. last year, a 0.4% increase from 2018. Enclave sales were up 3% to just over 51,000, according to Autodata Corp. Related Video: