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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.

2020 Cadillac XT6 revealed as Caddy's first big crossover

The 2020 Cadillac XT6 rounds out Cadillac's crossover lineup with a range-topper. It also presents an option for people who wanted a three-row Cadillac but didn't want something as large and truck-like as an Escalade. This is partly achieved through using a naturally aspirated 3.6-liter V6 powering either the front or all four wheels. A nine-speed automatic transmission sends the V6's 310 horsepower and 271 pound-feet of torque to the ground. The XT6 is split between two trim levels that appear to be marketed as different rather than one being better. The first is redundantly called Premium Luxury. A chrome grille and trim, red taillights and unique 20-inch wheels distinguish it as such from the outside, while wood trim covers the inside. The second is Sport, and black trim replaces the chrome, red taillights are swapped for clear, and carbon fiber supplants the wood inside. It has different 20-inch wheels as well as optional 21-inch pieces. The Sport gets mechanical tweaks, too, including continuously adjustable shocks and a standard all-wheel-drive system with yaw control. No matter the trim, all XT6's get an interior that builds upon the XT4 with more physical buttons and a control knob for the infotainment for scrolling through menus and lists. Safety and convenience features abound, including standard automatic emergency braking, blind-spot warning and lane-keep assist. Optional features include night vision, parking assist with braking support, a heads-up display and a camera screen mirror. Adaptive cruise control is also available, but it's not Super Cruise, our Tech of the Year award winner. Cadillac will start taking orders for the Tennessee-built crossover this spring. The final release date hasn't been announced yet, though. That information, along with pricing, should come closer to when the crossover begins production. Related Video:

GM to build $1.3 billion Cadillac plant in China

General Motors has gotten approval to build a $1.3 billion manufacturing facility for its Cadillac brand in China. China's National Development and Reform Commission signed off on plans for GM to build the plant in the country's Shanghai's Jinqiao zone; construction is expected to begin in June of this year. According to a Bloomberg report, the plant will have an annual production capacity of 150,000 units.
No surprise here, but Cadillac would like to sell a lot more cars in the plush Chinese luxury market. The brand moved only 30,010 cars in China last year, compared with 400k for Audi, and about 330k for BMW. With Cadillac already telling us that it would be moving production of its XTS sedan to China - a production decision that saves having to pay 25-percent import tariffs - approval of the factory is a critical win for the company.
In fact, according to earlier comments by GM China president Bob Socia, it's at least conceivable that Chinese-built Cadillacs could be shipped back to the US for sale. The brave new world of globalization, getting stranger by the minute.