2014 Buick Verano on 2040-cars

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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.

Trump prods General Motors over its auto plants in China

WASHINGTON — U.S. President Donald Trump, who is engaged in a trade war with Beijing, said on Friday that the largest U.S. automaker, General Motors, should begin moving its operations back to the United States. "General Motors, which was once the Giant of Detroit, is now one of the smallest auto manufacturers there. They moved major plants to China, BEFORE I CAME INTO OFFICE. This was done despite the saving help given them by the USA. Now they should start moving back to America again?" Trump said in a post on Twitter. Trump appeared to be referring to a Bloomberg News story that reported GM's hourly workforce of 46,000 U.S. workers has fallen behind that of Fiat Chrysler as the smallest of the Detroit Three automakers. Over the past four decades, GM has dramatically cut the size of its overall U.S. workforce, which numbered nearly 620,000 in 1979. GM did not directly comment on Trump's tweet. "GMÂ’s China operations are not a threat to U.S. jobs," the company said in a fact sheet, noting that its joint ventures have sent $16 billion in equity income to GM since 2010 and that it has invested $23 billion in U.S. operations since 2009. GM's U.S. hourly workforce has fallen by about 4,000 jobs since the end of 2018 to about where it was a decade ago. Trump's ire with GM comes as contract talks with the United Auto Workers union with the Detroit Three automakers intensify ahead of a Sept. 14 deadline. Trump has previously attacked GM for building vehicles in Mexico and for ending production at plants in Michigan, Ohio and Maryland and threatened to cut GM subsidies in retaliation. GM's decision to close four plants in the United States is a central issue in the contract talks. Trump has made boosting auto jobs a key priority and has often attacked automakers on Twitter for not doing enough to boost U.S. employment. His 2020 re-election bid will hinge on holding key industrial battleground states like Wisconsin, Pennsylvania and Michigan that narrowly voted for him in 2016. China is the worldÂ’s largest auto market, and government policy favors automakers assembling vehicles there, and not importing them from overseas. In response to TrumpÂ’s latest tariffs, China said last week it will reinstitute 25% tariffs on U.S.-made vehicles. The U.S. is imposing 15% tariffs on more than $125 billion in Chinese goods starting Sunday. GM sold 3.6 million vehicles in China last year accounting for 43% of its worldwide sales.

Buick lowering base prices on Regal, Verano

Buick might have two new options for buyers in the market for an inexpensive luxury sedan. In a move similar to the introduction of the LaCrosse 1SV base trim a few months ago, the brand is ready to offer cheaper, entry-level versions of the Regal and Verano. Like the LaCrosse 1SV, the Verano 1SV mostly cuts dealer margins to reduce the cost for customers. The small sedan is priced at $21,065, plus $925 destination, which is a significant $2,315 drop compared to the next higher trim. The powertrain is still a 2.4-liter four-cylinder making 180 horsepower and 171 pound-feet of torque and a six-speed automatic, but buyers lose out on satellite radio. According to CarsDirect, dealers are making just $106 on this model, versus $935 on the higher grade. Meanwhile, the Regal 1SV charts a slightly different path to a lower price. The trim starts at $27,065, which is a $2,925 savings over the next trim. Buyers still get leather seats too, but the powertrain here is a 2.4-liter four-cylinder without eAssist that makes 182 hp and 172 lb-ft of torque and a six-speed automatic. That's a 77 hp deficit compared to the turbocharged Regal, and combined city/highway fuel economy dips to 23 miles per gallon combined, compared to 24 mpg with forced induction. Buick is introducing the 1SV models in hopes of grabbing more attention for the brand. "We added this new base level to some models as a means of expanding the opportunity for more customers to experience Buick vehicles. The addition of these trims will create an increased awareness and consideration of these vehicles when being compared to the competition," said company spokesperson Nick Richards to Autoblog. However, you might not see many of these inexpensive Buicks on the road. "On the Verano, we suspect dealers will opt to stay away from a car with around $100 between invoice and MSRP - that's the pattern we've been seeing on the LaCrosse 1SV, which is practically impossible to find," said CarsDirect Senior Pricing Analyst Alex Bernstein to Autoblog. Also, the Regal 1SV's switch to a less powerful, naturally aspirated engine "could be a turn-off for some shoppers," he said. Related Video: