2012 Gmc Sierra 2500 Denali on 2040-cars

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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.

2015 GMC Yukon Denali

Automotive enthusiasts often wonder aloud - ourselves included - why General Motors would choose to keep GMC while sending Pontiac (and Saturn, and even Oldsmobile before it) into the great automotive graveyard in the sky. The answer, as is so often the case, is profit. It's much easier for GM to rake in money hand over fist by rejiggering the trucks, crossovers and SUVs that it would already be developing for Chevrolet and making them a bit more luxurious and *ahem* "Professional Grade" with new grilles, badges and unique packaging for GMC.
While it may sound like we're being cynical, we totally approve of GM's fullsize SUV strategy. The least-expensive way to get into the fold is with the Chevrolet Tahoe, which starts at $45,595 with a 5.3-liter V8 engine and a cloth interior. Bumping that same Chevy to LTZ trim and its $59,995 sticker price lands a much nicer leather-clad interior and more techno-bells and whistles than you can shake a stick at. But it still looks like a Tahoe, and it still comes with the smaller 5.3-liter engine. Or, you could do what we'd do: Walk into your GMC dealer and take a look at the Yukon Denali. Here's why.
Driving Notes

GMC Hummer EVs 'sold out for two years or more'

At the end of March this year, GMC said it had 65,000 reservations for the Hummer EV pickup and SUV. At the time, brand chief Duncan Aldred said, "Production’s actually slightly ahead of plan and weÂ’re putting things in place now to actually expedite that as well, so we can deliver these reservations quicker than we originally thought. WeÂ’re seeing momentum building," adding that "it still means a reservation now probably means delivering in '24." By the time of the 2024 GMC Sierra EV Denali Edition 1 reveal just a bit ago, that reservation number had climbed to 90,000. GMC shut down the Hummer reservations line a month ago. GM Authority reports that when GMC chief Duncan Aldred spoke at a media briefing ahead of the Sierra EV reveal, he said the Hummer is "sold out for two years or more."   Notice, the word "probably" has been replaced by the phrase "or more" in the production vocabulary. That development likely takes into account what's happened since March at GM's Factory Zero, where the automaker currently builds the Hummer. That site, along with the new Orion Township Assembly Plant, will soon build the Chevrolet Silverado EV, GMC Sierra EV and Cruise Origin autonomous vehicle. In a memo from the beginning of the year, GM said a $6.6 billion investment in EV production capability will ultimately allow 600,000 electric pickups to come off lines every year. That's at least a couple of years away, though. At the beginning of October, GM said it wanted to bump production of the EVs on sale now, which includes the Chevrolet Bolt, to 70,000 vehicles in 2023. Back to the Hummer, GMC increased September Hummer production to 700 units for the month. That was a huge bump over the monthly average in the nine months up to September, the production totaling 2,750 units for the first three quarters, yet well behind what the brand would like. And Factory Zero will shut down for a few weeks in November for upgrades to produce the additional vehicles. All of this assumes the supplies of chips and raw minerals for batteries, industrial supplies and industrial transport don't suffer another hiccup. If there's any good news buried in all this, it's that 95% of Hummer reservation holders were converting to paid orders, an absurdly positive number. Based on what we've seen so far, GM's got some good looking EVs on the way. Let's cross our fingers that the company can build them quicker. Related video: This content is hosted by a third party.