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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.

GM may have teased a whole group of electric vehicles

During GM's big CES press conference, the automaker highlighted a number of its upcoming electric car-related projects from delivery vans to the upcoming flagship Cadillac Celestiq. In the middle of it all, a collection of mystery cars sat in the background behind speakers. They were in the dark, lit only with their running lights, and while it's possible they're just generic filler cars or concepts, we think they could be future products. Our best shot of the cars together is shown above, and we can pretty easily identify three of the vehicles. In the center is obviously the GMC Hummer EV. On either side of it are Cadillacs. To the left seems to be the Lyriq crossover, and to the right is the Celestiq sedan. Two of these cars have production dates, and the third has been confirmed for eventual production, just without timing. This is why we think the rest of the cars are upcoming models. The next most easily identified car is on the near right behind the Cadillac Celestiq. It very clearly has a Chevy bowtie illuminated in the running lights. And looking closely, it appears to be a pickup truck. It's difficult to make out anything more than that. The nose does look a bit more rounded and swept back than the brick-like designs of the Silverado truck line. That also squares with what seemed to be the upcoming truck that appeared in the background of yet another GM presentation. GM previously said this electric Chevy truck will be a full-size model with up to 400 miles of range. That leaves us with three more mysterious models. Over to the left behind the Cadillac Lyriq are what appear to be a pair of crossovers. The one on the far left looks low, curvy, and possibly with a fastback roof. The one on the right is taller, boxier, and probably more of a full-size people hauler. It's hard to say much more beyond that. They could be new electric Buicks, which would fit in nicely with that brand's crossover portfolio, and would likely be highly successful in China, where Buicks, crossovers and electric cars are all rather hot commodities. As for the mystery car on the far right, it's quite a puzzle. We can at least rule out Buick and Cadillac, and GMC since it's definitely a car, and a rather small one compared with the other cars on display. That leaves Chevy, and possibly the autonomous division Cruise. We're leaning toward it being a Chevy, since the first Cruise vehicle is going to be a boxy pod of sorts.

Huge, pricey trucks haul jobs and profits for the Detroit Three

DECATUR, Texas — Mickey McMaster is on his 12th pickup truck. The 61-year old farm equipment dealer in Decatur, Texas, two weeks ago treated himself to a 2019 GMC Denali for around $69,000 — a reward for long hours at work. "For me this is the Cadillac of trucks, it's a real luxury vehicle," McMaster said. "I've worked my way up to afford a truck like this and it shows that I've earned it." McMaster is the kind of customer General Motors Co is banking on as it plans to add 1,000 jobs at a plant in Flint, Michigan that will build a new generation of its largest pickups. Demand from Texas and other heartland states for big pick-ups is providing a lifeline to many workers the No. 1 U.S. automaker is laying off at plants elsewhere. The Detroit Three automakers and thousands of their U.S. workers are counting on customers like McMaster to keep buying bigger and more luxurious pickup trucks even if overall U.S. vehicle demand weakens this year, as most analysts predict. At Flint, GM will build a new generation of its heavy-duty Chevrolet Silverado and GMC Sierras, including luxury models that are some of the most profitable vehicles on the planet. GM, Ford Motor Co and Fiat Chrysler Automobiles NV's Ram division own the segment and are each doubling down with new or redesigned models launching this year. Sales of heavy-duty pickups in the United States have grown to more than 600,000 vehicles a year, up more than 20 percent since 2013, according to industry data. Prices for luxury models can easily top $70,000. GM on Tuesday celebrated the launch of a new generation of heavy-duty GMC and Chevrolet pickups at the assembly plant in Flint, Michigan, that is now building all such trucks for the company. At the same time that GM is laying off thousands of U.S. workers and planning to shutter five North American factories, Flint is hiring. The plant runs on three daily shifts, six days a week. As the new model's assembly system ramps up, the plant's capacity will increase by more than 25 percent, plant manager Mike Perez told Reuters. The Flint plant plans to add 1,000 workers, more than half of the 1,500 factory workers who have asked to transfer from plants GM has targeted for shutdown as part of CEO Mary Barra's restructuring plan. "We're bringing in 50 to 100 people every week," said Perez. Workers last week were still finishing the job of retooling the Flint factory to build the new heavy-duty trucks as part of a $1.5 billion investment project.