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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.

Hybrid, Plug-in Hybrid and EV Buyer's Guide: Which one do you want?

If you're shopping for a new vehicle these days, there's a litany of acronyms, buzzwords, and technobabble to further complicate an already difficult decision. But if you're looking at a green powertrain, you have three basic choices to compare: hybrid, plug-in hybrid and "EV" or, electric vehicle. So what are they and which one — if any — is right for you? Research your next new vehicle using Autoblog's Car Finder. Gasoline-Electric Hybrids By now, most people are familiar with the concept of a hybrid car. Thank Toyota's Prius for that. At its most basic, a hybrid vehicle has two powertrains, one gasoline and one electric, which work together for maximum efficiency. At low speeds, the engine can shut off entirely, relying solely on the battery for propulsion. The battery is either charged as you drive by converting kinetic energy into potential energy via a complex regenerative braking system, or directly off of the gas motor. This is a very hands-off, behind-the-scenes system as all the driver has to is put in gas and drive as normal. Hybrids come in all shapes and sizes and, according to the EPA, range in fuel economy from 58 mpg for the Hyundai Ioniq Blue all the way down to 13 mpg for the Ferrari LaFerrari Aperta. Best For: Anyone who want to see their fuel consumption go down without many sacrifices. You can easily find a hybrid sedan, hatchback, crossover, SUV or even a pickup truck (i f you can find one). Best of all, a hybrid requires no special equipment to be installed at home, or added work for the driver. Hybrids do cost more than traditionally-powered competitors, so make sure to compare projected fuel savings with how much extra a hybrid will cost – it may take a surprisingly long time to break even. The EPA provides a handy calculator for this very purpose. Our Favorite Hybrids: 2017 Toyota Prius 2018 Hyundai Ioniq Hybrid 2017 Ford Fusion Hybrid Plug-In Hybrids Sometimes referred to as a PHEV, or plug-in hybrid electric vehicle, this is a baby-step towards full electrification. Armed with a much larger battery pack than a hybrid, PHEVs can go between 12 ( Mercedes-Benz GLE550e) and 97 ( BMW i3 w/Range Extender) miles on electricity alone depending on the model and your driving style. Like a normal hybrid, the driver is largely unaware of which power source is currently in use, even as they switch over — either because the battery is drained, or the driving circumstances require more power.

Weekly Recap: Lamborghini to build SUV

Finally, Lamborghini will build a sport utility vehicle. The Italian supercar maker confirmed this week that it will launch a luxury SUV in 2018. It will be built at Lamborghini's soon-to-expand factory in Sant'Agata Bolognese in Italy, and will double the company's current sales volume. Lamborghini did not announce a name for the vehicle or other details, but noted a concept version, the Urus, was displayed at the Beijing motor show in 2012. It will be sold around the world, but it's expected to be a critical offering in the United States, China, and the Middle East. The automaker projects the SUV will sell about 3,000 units per year, and it will be the third product in Lamborghini's portfolio. It currently sells the Huracan and Aventador supercars. "The introduction of a third model line endorses the stable and sustainable growth of the company and signifies for us the beginning of a new era," Lamborghini chief executive Stephan Winkelmann said in a statement. The project is also a boon for Italy, which will get 500 new jobs in the Emilia Romagna region as Lamborghini's factory will nearly double in size. Ian Fletcher, principal analyst for IHS Automotive, said the SUV will position Lamborghini for future growth. "It could well also bring new customers to the brand [who] may find the dramatic styling of Lamborghini products appealing, but find its typical sports cars restrictive," he said. "If it is a success, the SUV could be a catalyst to Lamborghini broadening its portfolio further." OTHER NEWS & NOTES GM invests in Chevy Camaro factory General Motors is investing $175 million to upgrade its factory in Lansing, MI, to build the 2016 Chevy Camaro. The investment will pay for new tooling and equipment. The improvements include three new paint systems and two new robotic framers. GM will add a second shift at the factory to build the Camaro, resulting in 500 jobs. The automaker had dropped the plant to one shift last year amid slow sales for its products, the Cadillac ATS and CTS. GM is spending $5.4 billion over the next three years to upgrade its US facilities. Last week, GM announced plans to spend $439 million to build a new paint shop for the Chevy Corvette. While the Camaro and Corvette plant improvements are intriguing to enthusiasts, GM also confirmed this week that it is investing $1.2 billion in its Fort Wayne (IN) factory that builds trucks.