1992 Camaro Rs 5.0 305 on 2040-cars

Auto blog

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.

GM reports third straight sales drop in China in 2020

BEIJING — General Motors' vehicle sales in China fell 6.2% in 2020, as the U.S. automaker suffered a prolonged slowdown in the world's biggest auto market. GM, China's second biggest foreign automaker, delivered 2.9 million vehicles in the country last year, the company said on Wednesday, for a third straight decline in annual sales. But sales have been recovering in the second half of last year, up 12% between July and September and 14% in the final three months. GM has a Shanghai-based joint venture with SAIC Motor, in which the Buick, Chevrolet and Cadillac vehicle brands are made. It also has another Liuzhou-based venture, with SAIC and Guangxi Automobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of its Buick brand grew 4% on the year and Wuling rose 9%, the statement said. Luxury brand Cadillac's sales increased 8%. Sales of GM's more affordable Baojun brand dropped 33% last year, while sales of its mass-market Chevrolet tumbled 30%. GM's delivery of 2.9 million vehicles in China follows 3.09 million vehicles in 2019, 3.65 million vehicles in 2018, and 4.04 million in 2017, for a three-year decrease of 28%.

400,000 Chevy, GMC pickups recalled: Side airbags can explode

DETROIT — General Motors is recalling more than 400,000 pickup trucks in the U.S. because the side airbags can explode without warning and spew parts into the cabin. The recall covers certain 2015 and 2016 Chevrolet Silverado and GMC Sierra 1500, 2500, and 3500 trucks. Documents posted Friday by U.S. safety regulators say the airbag inflator can rupture or the end cap can fly off on both sides of the trucks. Documents say three inflators ruptured in 2015 Silverados last month, one in Florida and two in Texas. All three trucks were unoccupied at the time, and GM says it has no reports of injuries. Dealers will replace both side airbag modules. The company says it has a limited number of replacement parts available. Owners will be notified starting Aug. 16 and they'll get a second letter when parts are widely available. About 9,000 of the trucks were recalled last year for the same problem. The company says a manufacturing defect allowed moisture into the inflator while it was being manufactured, causing corrosion. The inflators were made in Mexico by Joyson Safety Systems, the company that took over Takata. Back in April, Silverado and Sierra were among nearly 750,000 GM vehicles in a National Highway Traffic Safety Administration (NHTSA) investigation into non-deploying driver-side airbags. That investigation is ongoing. Takata is responsible for the largest recalls in automotive history, covering about 100 million inflators among 19 major automakers worldwide, including about 67 million inflators in the United States. Nineteen deaths in the U.S. have been attributed to Takata inflators. Only about 50 million of the 67 million recalled inflators in the U.S. have been repaired. This latest recall is a good reminder to go to NHTSA's recalls website and enter your car's VIN. Millions of recalled vehicles still pose a danger to their owners. Yours could be one of them.   Recalls Chevrolet GM GMC airbag Takata airbag recall