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GM sees 'strong year' in 2018, then gold in Chevy Silverado for 2019

DETROIT — General Motors said on Tuesday it expects earnings in 2018 to be largely flat compared with 2017, but that profits should pick up pace in 2019 as its revamped line of high-margin pickup trucks hits the U.S. market. The 2018 earnings outlook was above market expectations, sending GM shares up more than 3 percent in premarket trading. "GM had a very good 2017 as we continued to transform our company to be more focused, resilient and profitable," GM Chief Executive Mary Barra said in a statement. "We are positioned for another strong year in 2018 and an even better one in 2019." GM and its Detroit rivals, Ford and Fiat Chrysler Automobiles, are bringing on new trucks at a time when overall U.S. new vehicle sales have been falling, but truck sales continue to grow as consumers abandon passenger cars in favor of pickups, SUVs and crossovers. GM on Saturday fired a new round in the battle for profits from one of the U.S. auto industry's most lucrative segments when it showed a new generation of its Chevrolet Silverado pickup truck at the Detroit auto show. The new Silverado, a highlight of the event, is the successor to GM's best-selling vehicle in North America. Sales of the current Silverado rose nearly 2 percent to 585,000 vehicles in 2017. In the coming months, the company will also reveal a revamped GMC Sierra pickup truck. U.S. new vehicle sales fell 2 percent in 2017 after hitting a record high in 2016, and are expected to drop further in 2018 as interest rates rise and more late-model used cars return to dealer lots to compete with new ones. GM said on Tuesday that while it retools a factory in Ft. Wayne, Indiana, to make the new pickup trucks, it will shift some production to an Oshawa, Ontario, plant in order to avoid missing sales in a hot market for the vehicles. The No. 1 U.S. automaker said it will record a $7 billion non-cash charge for its fourth-quarter 2017 earnings related to deferred tax assets. GM said it expects capital expenditure in 2018 of around $8.5 billion, about $1 billion of which will go toward funding self-driving car technology. Last week, the company said it is seeking U.S. government approval for a fully autonomous car — one without a steering wheel, brake pedal or accelerator pedal — to enter the automaker's first commercial ride-sharing fleet in 2019. GM said it expects 2017 earnings per share at the high end of its previously forecast range of $6 to $6.50.

Buick, GMC making OnStar Connected Services standard

The thing about the future is that so long as you're alive, you're going to get there whether you like it or not. Thanks to over-the-air connections essentially being a compulsory part of EV ownership and an increasingly important — and profitable — component of ICE ownership, it's easiest for automakers to install full-featured Internet connections in every vehicle. GM has taken the first step, a report in GM Authority saying that as of June 2, all Buick and GMC models are sold with the Onstar Connected Services plan good for three years. The OnStar site shows the Connected Vehicle tier that comes with a Wi-Fi hotspot costs $24.99 per month, which would be $900 minus a few pennies for three years. At the top end is OnStar Premium that runs about $1,800 for three years. Both include Connected Services features, yet GMA reports that depending on the vehicles, OnStar Connected Services will cost between $905 and $1,675. Only the GMC Hummer EV Edition 1 is excluded for now. GM confirmed the change to GM Authority, saying, "This offering provides our owners with a full suite of OnStar and Connected Services for three years, providing them with more time to enjoy services such as remote key fob, Wi-Fi data and OnStar safety services. By including this plan as standard equipment on the vehicle, it provides more customer value and a more seamless onboarding experience." Three trims of the GMC Sierra 1500 and two trims of the GMC Yukon and Yukon XL come in at the low end, OnStar adding $905 to their MSRPs. Almost every other vehicle gets hit with a $1,500 charge. The GMC Sierra HD Pro is the only model to charge $1,675 for it, which GMA breaks out as a "$1,500 3-year subscription and $175 OnStar & GMC Connected Services Capability." This brings up the question of the price differences; we can't tell if there's a difference in feature content between the price tiers, or why the Sierra HD gets the extra $175 fee. The automaker told GMA the upcharge will be folded into the MSRP. On the configurator for the Sierra 1500 SLE, for instance, the dialog box for three years of OnStar at $1,500 is automatically checked and can't be unchecked. The Buick configurators we tried don't mention OnStar.

GM recalls nearly 24,000 Buick Regals for brake issue

Buick is recalling 2018-2020 model year Regals to address a software defect in the braking system that would result in a loss of power assist under certain circumstances, making the brakes difficult to operate and potentially leading to a crash. In total, 23,734 models are covered by the campaign. "In the event of a partial or full loss of vacuum-brake assist, the vehicle’s hydraulic-brake boost is designed to supply supplemental pressure to the vehicleÂ’s brake system. A software error in the electronic brake control module (EBCM) may fail to activate the hydraulic-brake boost under these conditions," GM said in its defect report to NHTSA. "If the vehicleÂ’s vacuum-power brake assist partially or fully fails, braking events may require additional stopping distance, depending on the brake pedal force applied by the driver. Increased stopping distances could increase the risk of a crash." GM says that a warning indicator will illuminate in the dash if the system completely fails, and drivers may notice an increase in brake pedal resistance. Failure will not render the brakes inoperable, but they will require more force to operate. GM has begun notifying dealers of the defect; owners should be notified starting in August.   Related video: Recalls Buick GM Safety Hatchback Wagon Sedan