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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.

Steve Carlisle replaces Johan de Nysschen as head of Cadillac

Johan de Nysschen, a longtime automotive industry executive, is out the door at Cadillac after four years at the helm of GM's flagship luxury brand. Steve Carlisle will replace de Nysschen as General Motors senior vice president and president, Cadillac. Carlisle previously served as president and managing director of GM Canada. Travis Hester will replace Carlisle in that role, starting immediately. "We appreciate Johan's efforts over the last four years in setting a stronger foundation for Cadillac," said General Motors President Dan Ammann. That strong foundation is mostly seen overseas. Cadillac has seen record sales in China under de Nysschen's watch, but has continued to flounder in its home market of the United States with market share significantly lower than rival brands like Audi, BMW, Lexus, and Mercedes-Benz. Growth in the U.S. market is mostly happening with crossovers and SUVs, and Cadillac has been trailing its German and Japanese rivals on that front. The brand-new XT4 is seen as a big potential sales booster for the automaker, but its late arrival has already hurt the brand's sales figures here in America. "Looking forward, the world is changing rapidly, and, beginning with the launch of the new XT4, it is paramount that we capitalize immediately on the opportunities that arise from this rate of change," said Ammann. "This move will further accelerate our efforts in that regard." Carlisle will report directly to Ammann in his role as the head of the Cadillac brand. Related Video:

Jay Leno welcomes a 2016 Cadillac CTS-V into the garage

After checking out a multitude of classic cars and customs over the past few weeks, Jay Leno switches things up with a modern performance machine in the latest video from the garage – a 2016 Cadillac CTS-V. Leno is curious about Caddy's attempt to challenge the BMW M5 and Mercedes-Benz E63 AMG S, and he takes a long, technical look at the sedan with chief engineer David Leone. Not content to just peek under the hood, Leno puts the CTS-V up on the rack to see what it packs underneath the svelte body. Once he gets the lowdown on the Caddy's engineering, it's time for a drive. Leno also flexes his interviewing skills while behind the wheel and gets even more info about the CTS-V's capabilities from Leone. He seems fairly impressed, but Leno's most entertaining question about the 640-horsepower sedan is whether it can do a burnout. He provides a definitive answer to that at the end of the clip. Related Video: