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GM earnings rise 1% as buyers pay more for popular pickups
Thu, Aug 1 2019DETROIT — 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.
NHTSA upgrades probe into 1.7 million GM vehicles over wiper failures
Tue, Dec 17 2019WASHINGTON — The U.S. National Highway Traffic Safety Administration (NHTSA) said Tuesday it is upgrading an investigation into 1.7 million General Motors vehicles for windshield wiper failures. The auto safety agency opened the probe in November 2018 to see if GM needed to expand a 2016 recall of 2013 model year Chevrolet Equinox and GMC Terrain SUVs to cover additional vehicles. The engineering analysis probe covers 2010-2012 and 2014-2016 Equinox and Terrain vehicles. NHTSA could demand a recall after it completes the probe. NHTSA said it has reviewed 1,900 complaints and reports related to the issue in the 1.7 million vehicles. NHTSA said it has seen elevated failure rates in the 1.7 million vehicles, even though GM said the recalled vehicles have "double the warranty rate and five times the complaint rate." GM said it will "fully cooperate to support their investigation. We do not believe these windshield washer systems are defective." The wiper failures that prompted the 2016 recall were attributed to water and debris intrusion into the windshield wiper assembly ball joints, leading to excessive wear and eventual detachment of the ball joint. GM said it was installing an improved windshield wiper motor and transmission assembly and relocating a drain hole at the base of the windshield. Related Video:
2018 GMC Sierra 1500 Buying Guide | What you need to know about this pickup truck
Mon, Mar 26 2018The GMC Sierra is a work-capable truck that can be optioned like a luxury car. Variety and choice are the keywords for the Sierra, not to mention close rivals like the Ford F-150, Ram 1500, and Chevrolet's own Silverado 1500. A Sierra buyer has a seemingly infinite list of choices when it comes to specifying exactly what they need in their pickup. In terms of cab length alone, there are three choices – Regular, Double, and Crew – to go along with your pick of Short, Standard, or Long cargo bed. Engines range from a 4.3-liter V6, upward to a range-topping 6.2-liter V8 available in top trim levels like the SLT and Denali. The Sierra can be ordered with a choice of two- or four-wheel drive, and transmissions include both a 6- and 8-speed automatic, depending on your choice of powertrain and trim. Changes for the 2018 model year include the standard fitment of a rearview camera, along with a Tire Fill Alert system that lets the driver know when the correct pressure has been reached. A 7.0-inch touch-screen stereo system is also now standard equipment on base Sierras. Is the 2018 GMC Sierra Safe? The National Highway Traffic Safety Administration gives the 2018 GMC Sierra 1500 an overall crash-test rating of five stars. In front and side impact tests, the latest Sierra 1500 scored a five-star safety rating. A four-star rating was recorded in the Rollover resistance test – this rating applies to Sierra trucks fitted with either rear- or all-wheel drive. Because the Sierra is such a popular vehicle, it's worth noting that the NHTSA conducted crash tests on models fitted with both these drivetrains, and in two cab lengths. The Insurance Institute for Highway Safety, which provides ratings for new vehicles based on its own comprehensive crash tests, also tested two versions of the Sierra 1500. The extended cab model registered "good" ratings in all but one of the IIHS' crash tests. Driver side protection in the small overlap test was deemed "acceptable" – front passenger-side results were not rated. Headlight effectiveness was given an "acceptable" rating, dependent on trim level selected. Meanwhile, the ease of use of the Child Seat Anchors (LATCH) was deemed "acceptable" in the extended cab Sierra. Ratings dip slightly for the Sierra 1500 in standard cab format. Driver-side protection in the front small overlap test drops to "marginal," while the available LATCH system scored a "poor" for its ease of use.