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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.
Thoughts on the 2022 GMC Hummer EV and the record-setting SSC Tuatara | Autoblog Podcast #650
Fri, Oct 23 2020In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by News Editor Joel Stocksdale. They lead the podcast with the week's two big news stories: the reveal of the 2022 GMC Hummer EV and the 316-mph production car speed record set by the SSC Tuatara. Afterward, the editors discuss some recently driven cars, the Lincoln Continental Coach Door Edition and the GMC Canyon AT4. Autoblog Podcast #650 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown News: 2022 GMC Hummer EV reveal SSC Tuatara production car speed record Cars we're driving2020 Lincoln Continental Coach Door Edition 2021 GMC Canyon AT4 Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video:
GM recalls 740,000 vehicles over daytime running light issue
Wed, Dec 14 2022General Motors is recalling over 740,000 vehicles due to a daytime running light issue that causes all of the affected cars to run afoul of Federal Motor Vehicle Safety Standards. Vehicles affected by this recall are spread across many of GM’s brands. Models include the 2020-2023 Cadillac CT4 and CT5, 2021-2023 Buick Envision, 2022-2023 Cadillac Escalade and Escalade ESV, 2022-2023 Chevrolet Silverado 1500, Suburban, Tahoe and 2022-2023 GMC Sierra 1500, Yukon, and Yukon XL. GM says that the daytime running lights may remain on in these cars when the headlights are activated. This is a problem, because FMVSS rules require that the daytime running lights deactivate once the headlights turn on. If the DRLs remain on, GM says that could result in additional glare, thereby increasing the risk of an accident. The cause of this failure to deactivate the DRLs comes from body control module software that “under a combination of certain pre-conditions, could fail to deactivate the DRLs,” according to GM. Other GM vehicles were tested, but due to a difference in software or hardware, they remain unaffected. If this is reminding you of another recent GM recall, youÂ’d be right, as GM recalled another 340,000 vehicles for the same issue last month. After that original issue was found within GM, the company began looking into its other cars to determine if the population was larger than originally thought. GM found the additional vehicles included in todayÂ’s recall have the problem. The fix will either be via an over-the-air update or it will require you to bring the vehicle into a dealer for a software update, depending on which vehicle you have. Owner notification letters letting folks know what is necessary are currently scheduled to go out on January 23, 2023. Related video: Cadillac Escalade Infotainment Review









