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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.

Junkyard Gem: 1993 Buick Roadmaster Sedan

In 1931, GM's Buick Division introduced an eight-cylinder engine in its stolid rear-wheel-drive sedan models, and Americans could buy big, comfortable Buick four-doors with straight-eights and — starting in the 1954 model year — V8s driving the rear wheels for more than a half-century after that. Then, the last rear-wheel-drive LeSabre left the assembly line in 1985, and it seemed that an era had ended forever. But wait! For the 1992 model year, Buick revived the Roadmaster name and applied it to an old-timey giant sedan with a V8 engine sending power to the proper wheels. Production of the Roadmaster sedan continued through 1996, and I've found one of those throwback Buicks in a Denver self-service car graveyard. Yes, in an America full of front-wheel-drive cars contaminated by European or — even worse — Japanese influences, The General brought back the spirit of the 1931 Buick sedan. Sure, it was really a near-identical twin to the "whale-body" Chevy Caprice, complete with Chevrolet small-block V8 engine, but that didn't matter. This was the kind of Buick that our prosperous great-grandparents bought in 1932 and 1948 and 1957. And the appeal of the great big eight-cylinder Buick sedan wasn't just limited to the United States. When the film adaptation of the great Marguerite Duras novel, L'Amant, was made, only a 1932 Buick 90 sedan would have made sense for the wheels of the wealthy Saigon heir. A big reason Buick is such an important brand in China right now is the legacy left by the memorable Buick machinery that owned the roads of 1930s China. These days, most of the 1992-1996 Roadmasters you'll see will be the station wagons, but we mustn't forget the sedans. Looking at the interior of this car is like a flashback to the 1960s, when stately Buick sedans had squishy seats you'd just disappear into when you climbed in. Cool-sounding names for ordinary features had gone out of style decades earlier, but not for the Roadmaster! Dynaride was a rear suspension that used air shocks and a compressor to keep the ride height level regardless of load. The last model year for a genuine Buick V8 engine was 1980, though you could make the case that the Rover V8 (made until 2006) was really a Buick all along. The engine in this car is pure Chevrolet: a 5.7-liter small-block V8 rated at 180 horsepower. Buick was a big Olympics sponsor at this time, while Oldsmobile handled golf. Still, the Buick-buying demographic of 1993 tended to approve of golf.

GM recalls 51k Enclave, Traverse, Acadia crossovers over fuel gauge inaccuracy

With all eyes fixed on General Motors in the wake of the ignition recall debacle, the auto giant has been carefully calling in a wide array of vehicles to fix anything and everything that could prove problematic. Just the other day it issued two separate recalls - one concerning the Cadillac SRX and another its heavy-duty pickups - and now it is issuing another.
This time the vehicles in question are the Buick Enclave, Chevy Traverse and GMC Acadia, three fullsize crossovers based on GM's Lambda platform. In an estimated 51,640 units manufactured between March 26 and August 15, 2013, the engine control module has been found to incorrectly display the level of fuel in the tank.
As a result, owners are being notified to bring their vehicles in to their local dealers to have the ECU reflashed to fix the problem. View the full details in the announcement below from the National Highway Traffic Safety Administration.