2003 Chevrolet Corvette 50th Anniversary Edition on 2040-cars

Auto blog

GM profit dips on truck changeover, but beats estimates

DETROIT — General Motors on Thursday reported a higher-than-expected quarterly profit despite a drop in production of high-margin pickup trucks, as it gears up for new models that are expected to boost profits next year. Like rivals Ford and Fiat Chrysler Automobiles, GM is banking on highly-profitable Chevy Silverado and GMC Sierra pickup trucks to lift profits, as consumers shift away from traditional passenger cars in favor of these larger, more comfortable trucks, SUVs and crossovers. During the first quarter, the process of changing over to GM's new pickups resulted in a drop in production of 47,000 units. GM Chief Financial Officer Chuck Stevens said the production drop had resulted in a drop in pre-tax profit of up to $800 million. Earlier this year, GM said its 2018 profits would be flat compared with 2017, but expected its all-new pickup trucks would boost margins starting in 2019. On Thursday, GM reiterated its full-year 2018 forecast for adjusted earnings in a range from $6.30 to $6.60 per share. The automaker said capital expenditures were more than $500 million higher in the quarter because of investments its new pickup trucks and a family of low-cost vehicles under development with Chinese partner SAIC Motor Corp. On Wednesday, rival Ford said it would stop investing in most traditional passenger sedans in North America. CFO Stevens told reporters on Thursday that GM has "already indicated that we will make significantly lower investments on a go-forward basis" in sedans. 2019 GMC Sierra View 21 Photos GM benefited from a lower effective tax rate in the quarter, but adjusted pre-tax margin fell to 7.2 percent from 9.5 percent a year earlier. Stevens said the company's profit margin should hit 10 percent or higher in the second quarter and for the full year. GM said material costs were $700 million higher in the first quarter, and it expects those costs to continue rising. The automaker said it would counter those increases with cost cutting measures. "It is a more difficult environment than it was three or four months ago," Stevens said when asked about rising commodity prices from potential steel and aluminum tariffs announced by the Trump administration. "But we are confident we can continue to offset that." The company reported quarterly net income of $1.05 billion or $1.43 per share, a drop of nearly 60 percent from $2.61 billion or $1.75 per share a year earlier. Analysts had on average expected earnings per share of $1.24.

The Chevrolet Bolt is headed to China as a Buick SUV

When spy photos of what appeared to be Chevrolet Bolt EV with some minor front- and rear-end updates circulated last week, Autoblog surmised that GM was working on some sort of Bolt-based vehicle — potentially a crossover — to be sold in China as a Buick. We may just have corroboration for that theory. On Thursday, Motor1.com spotted a story published earlier this week on the Chinese site Auto Home which claims that GM has applied to sell an all-electric SUV under the Velite 7 nameplate in China.  There's little differentiating the Velite 7's exterior from the Bolt EV's, apart from bumpers, badges, and a little extra ground clearance. Up front, the bowtie is replaced by a round Buick badge, and the bumper picks up an almost Prius-like appearance thanks to contrasting vertical elements and a thin grille bleeding into the head lights to give it a full-width appearance. Chevy Bolt-based prototype View 16 Photos If the Chinese report is accurate, there is one significant difference under the skin. Per the application, the Buick crossover variant is to be powered by a 174-horsepower electric powertrain. That's down 26 horsepower from the Bolt EV's powertrain, and we can't help but think that a lifted Buick variant might just need every pony it can get.  The needs of the Chinese market are unique, and we're certain GM knows what it's doing if these figures are accurate. We have no reason to believe Buick plans to sell the Velite 7 EV here in the States, though we expect an updated Chevy Bolt eventually, and we wouldn't be surprised if Buick brings something along shortly to fill the void left by the departure of the Regal sedan and its variants.  Related Video:

2024 Chevrolet Silverado EV output jumps to 754 hp and 785 lb-ft

A couple of days ago, GMC unleashed its 2024 Sierra EV Denali Edition 1 pickup, the luxury truck division's version of the 2024 Chevrolet Silverado EV. As has been the case between Chevy and GMC for decades, GMC designers worked to put ample visual difference between the two pickups that share the similar underpinnings. Unlike what's been the historical case, GMC announced output figures for the Sierra EV well above those for the Silverado. Preliminary estimates for the battery-electric Sierra with the dual-motor powertrain are 754 horsepower and 785 pound-feet of torque. Chevy revealed the 2024 Silverado EV in January with 664 hp and 785 lb-ft in RST trim. We're not sure what happened after the GMC debut, but the Bowtie has updated the Silverado's output to match the GMC with 754 hp and 785 lb-ft. Chevy truck communications spokesperson Sean Szymkowski submitted a statement to various outlets explaining, "As we prepare for production of the Silverado EV, our engineering team has further refined the estimated performance specs for the 2024 Chevrolet Silverado EV RST First Edition. GM now estimates horsepower to be up to 754 and torque up to an estimated 785 lb-ft when Wide Open Watts mode is engaged." It's possible Chevrolet did so in order to forestall backlash about the disparity, or it's possible the automaker already planned to do so after the GMC dropped. On the ICE side, buyers have got used to powertrain parity, the Silverado and Sierra offering the same engines with the same outputs even with pricing about $3,600 apart on the respective top trims. No matter how the decision was made, the benefits redound to Silverado EV buyers. By the way, the "Wide Open Watts" reference refers to the driving mode required to extract these peak power figures. In the GMC Sierra EV, this is called Max Power Mode. We're still looking for clarity on the output figures in everyday driving modes, we believe those will be the same 510 hp and 615 lb-ft that's the maximum in the lower trim Silverado EV Work Truck.    With a year to wait before the Silverado RST EV reaches reservation holders, and with the Chevrolet Work Truck providing real-world feedback before the RST arrives, don't be surprised at more tweaks made to both the Silverado and Sierra EVs before they hit the market. Related video: GMC reveals the all-electric 2024 Sierra EV