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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.

GM cutting Chevy Sonic, Buick Verano production [UPDATE]

UPDATE: A previous version of this story indicated that Orion Assembly would be idled for seven weeks, from February 16 through April 6. This was incorrect. The factory will instead only be idled for the weeks of February 16 and April 6. The story has been edited to reflect this. General Motors has announced that the factory responsible for the Buick Verano and Chevrolet Sonic will be idled for the weeks of February 16 and April 6, with blame being placed on excess supply. The Orion Assembly plant, about 45 minutes north of GM's Renaissance Center headquarters, employs about 1,800 people, but they'll be given a pair of furloughs as inventories of the sub-compact Sonic and premium compact Verano reach 127 days and 84 days, respectively. That works out to 26,600 Chevys and 9,800 Buicks waiting for buyers. According to Automotive News, the compact Chevy sales bested the industry average in 2014, jumping up nine percent versus the the overall segment's eight-percent gain, while the Buick sedan's sales were down four percent. When asked about the shutdown, a GM spokesman told AN that it will "build to market demand," while also pointing out that the company did not comment on production plans. News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing Buick Chevrolet GM buick encore orion assembly

These are the five most ridiculous attacks on the Chevy Volt [w/videos]

It's been a long, strange trip for the Chevy Volt from the time when the now-odd-looking concept version (above) was introduced at the 2007 Detroit Auto Show to today. And now, General Motors announced that the second-generation Chevy Volt will make an appearance at the 2015 Detroit show in January. This debut represents a victory for GM with what has easily become the most politicized car of the 21st Century. There are plenty of reasons for someone to criticize the Volt, but what's amazing is just how much anti-Volt energy has been spent not on things like the styling or how the EREV setup is not as efficient as a pure-EV powertrain. As we wait for more official information on the new Volt, we thought it would be fun to go back and look at some of the most wildly incorrect reporting and strangest attacks on the Volt from the archives. There is so much good stuff out there, it was hard to pare the list down, but these are our five favorites. Amazingly, they're not all clips from Fox News. Check 'em out below. 5. GM Is Going To Stop Making The Chevy Volt In The US Do you remember when GM was about to move Volt production to China? Well, yeah, this was reported back in early 2012 when a GM executive mentioned that the automaker would get benefits of building the Volt in the places where it sells them. This was spun into a story of GM taking Obama bailout money and then running to China. The Blaze was not happy: "Given the fact that Federal government helped itself to millions and millions of taxpayer dollars under the pretense that it was going to combat high unemployment by creating 'green jobs,' it would seem that moving research and development (and possibly manufacturing) overseas is slightly, well, counterproductive." Well, of course, that never happened. There's no way to say that GM will never build a version of the Volt in China, but the news we hear rumors of these days is that GM is going to move production of more Volt parts (specifically, the motors) to Michigan from overseas. 4. The Chevy Volt Is A Fire Trap There has never been a Volt that just spontaneously lit up while driving down the road. Yes, there were Volts that caught on fire. Yes, that's a scary thing. But there has never been a Volt that just spontaneously lit up while driving down the road. These were crashed test vehicles with destroyed batteries and plugged-in vehicles that were not the cause.