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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.

GM's Buckle to Drive teen safety feature comes to more models for 2021

In 2014, GM announced a feature called "Belt Assurance," which would prevent a vehicle from being shifted out of park until the driver and front passenger had buckled their seatbelts. Initially launched on certain fleet vehicles in 2014, the feature rolled out as a free option on the 2015 GMC Sierra, Chevrolet Colorado, Cruze and Silverado. At the time, GM said it would push Belt Assurance to more models if customers took to it. That appears to have happened; come 2019, GM repackaged Belt Assurance as Buckle to Drive, part of the automaker's Teen Driver System that bundled tech such as geofencing and speed limit warnings to help parents keep track of their children's driving habits. In that implementation, the system only works when Teen Driver Mode is activated, locking out the shifter and muting the radio for 20 seconds or until the seatbelts are buckled, whichever comes first. The system shows a visual warning in the gauge cluster, too.  For this model year, the Teen Driver System came standard on 10 Chevy models, but Buckle to Drive was only allotted to the Colorado, Malibu and Traverse. Later this year, the 2021 Camaro will join the Chevys outfitted with the Teen Driver System and will get Buckle to Drive in addition. GM Authority reports that for the 2021 model year, Buckle to Drive will also be picked up by the Cadillac CT4 and CT5. Previously, the Cadillac ATS, CTS, Escalade and XTS came with the Teen Driver System, but three out of those four vehicles are no more, and the 2021 Escalade makes no mention of the Teen Driver System nor Buckle to Drive among its safety features. Elsewhere around the GM empire, the Buick Envision and Encore GX include the Teen Driver System, as do six GMC vehicles, but it's not clear when any will be upgraded with Buckle to Drive. The tech could help save numerous teenagers' lives. On its page of teen crash facts, the Centers for Disease Control and Prevention writes that roughly 300,000 teens between the ages of 16 and 19 ended up in emergency rooms to treat crash injuries in 2017. Furthermore, "only 58.8% of high school students always wore seat belts when riding as passengers," and, "Among young drivers aged 15-20 who died in car crashes in 2017, almost half were unrestrained at the time of the crash (when restraint use was known)." Related Video:    

GM looks to combat high theft rates on SUVs with added tech

The Cadillac Escalade has been at or near the top of most-stolen and insurance-loss lists for more than seven years, until it dropped to number six earlier this year. In 2011 it was fitted with a host of new security features to address its easy-to-override features and that has brought the number of thefts down, but when eight of the ten most stolen rides are large SUVs from General Motors, no one will argue that something else needs to be done.
Thus, GM has fitted this same theft-deterring tech to the 2015 Suburban, Tahoe and Yukon. The Suburban and Tahoe will get the steering lock that the Escalade and Yukon already get, plus bolted-down third-row seats to deter thefts like this, stronger door lock cylinders and shields, and side-cut keys to inhibit picking.
Additional security measures in a Theft Protection Package can be purchased for $395, consisting of sensors on the greenhouse glass and interior, an incline/tilt sensor and added "key control systems" to make it more difficult for the men in black balaclavas to steal what you bought.