2014 Buick Encore Leather on 2040-cars

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GM sees 'strong year' in 2018, then gold in Chevy Silverado for 2019

DETROIT — General Motors said on Tuesday it expects earnings in 2018 to be largely flat compared with 2017, but that profits should pick up pace in 2019 as its revamped line of high-margin pickup trucks hits the U.S. market. The 2018 earnings outlook was above market expectations, sending GM shares up more than 3 percent in premarket trading. "GM had a very good 2017 as we continued to transform our company to be more focused, resilient and profitable," GM Chief Executive Mary Barra said in a statement. "We are positioned for another strong year in 2018 and an even better one in 2019." GM and its Detroit rivals, Ford and Fiat Chrysler Automobiles, are bringing on new trucks at a time when overall U.S. new vehicle sales have been falling, but truck sales continue to grow as consumers abandon passenger cars in favor of pickups, SUVs and crossovers. GM on Saturday fired a new round in the battle for profits from one of the U.S. auto industry's most lucrative segments when it showed a new generation of its Chevrolet Silverado pickup truck at the Detroit auto show. The new Silverado, a highlight of the event, is the successor to GM's best-selling vehicle in North America. Sales of the current Silverado rose nearly 2 percent to 585,000 vehicles in 2017. In the coming months, the company will also reveal a revamped GMC Sierra pickup truck. U.S. new vehicle sales fell 2 percent in 2017 after hitting a record high in 2016, and are expected to drop further in 2018 as interest rates rise and more late-model used cars return to dealer lots to compete with new ones. GM said on Tuesday that while it retools a factory in Ft. Wayne, Indiana, to make the new pickup trucks, it will shift some production to an Oshawa, Ontario, plant in order to avoid missing sales in a hot market for the vehicles. The No. 1 U.S. automaker said it will record a $7 billion non-cash charge for its fourth-quarter 2017 earnings related to deferred tax assets. GM said it expects capital expenditure in 2018 of around $8.5 billion, about $1 billion of which will go toward funding self-driving car technology. Last week, the company said it is seeking U.S. government approval for a fully autonomous car — one without a steering wheel, brake pedal or accelerator pedal — to enter the automaker's first commercial ride-sharing fleet in 2019. GM said it expects 2017 earnings per share at the high end of its previously forecast range of $6 to $6.50.

Junkyard Gem: 1986 Buick Riviera

The Buick Riviera personal luxury coupe attained monstrous proportions by the middle 1970s, scaling in at well over 4,500 pounds by 1976. After spending 1977 and 1978 as sibling to the Chevy Caprice, the Riviera then moved to the front-wheel-drive platform used by the Cadillac Eldorado and Oldsmobile Toronado, staying there through the 1985 model year. The Riviera world became a lot more interesting for the 1986 model year, when a smaller and more sophisticated generation hit showrooms with curvier lines and electronic gadgetry straight out of science fiction. Today's Junkyard Gem is one of those cars, found in a self-service boneyard in Phoenix, Arizona. What makes this car such a fascinating bit of automotive history is this dash-mounted touchscreen interface, known as the Graphic Control Center. The 1986 Riviera was the first GM vehicle to get the GCC, which means it was the first production car in history with a factory-installed touchscreen display. This system became available in the Buick Reatta and the Oldsmobile Toronado a few years later.  The GCC used a cathode-ray tube screen sourced from an ATM manufacturer, which ran on 120VAC power and required an inverter and dangerous high-voltage wiring inside the dash. It was used to operate the HVAC, the radio and the trip computer, as well as to display operating and diagnostic information. The system used numerous bulky components in addition to the dash screen; I've extracted a couple of complete sets of GCC components over the years and plan to build them into a junkyard-parts boombox. As it turned out, the senior-citizen-heavy demographic of Buick shoppers didn't feel great enthusiasm for the GCC and there wasn't a huge sales payoff for this revolutionary technology. That didn't stop GM from introducing the first mass-produced cars with head-up displays a couple of years later. The running gear wasn't quite as sophisticated as the GCC. The 1986-1993 Rivieras got old-fashioned 3.8-liter Buick V6s under their hoods; the one in this car was rated at 140 horsepower and 200 pound-feet. If you wanted a manual transmission in your '86 Rivvie, you were out of luck. A four-speed automatic was mandatory equipment. Note the unusual face-loading cassette deck in front of the shifter; the AM/FM radio was a remote-controlled unit living inside the center console. The MSRP for this car was $19,831, or about $55,691 in 2023 dollars.

Despite strong profits, GM still fighting flat market share

Looking at the progress General Motors has made since it entered bankruptcy, it's easy to forget that the company still has a long way to go before it's the juggernaut it once was. A recent report from Reuters points out that, while GM is making money, it isn't making any gains in terms of US market share. Quite the opposite, really. Consider this factoid: In 1963, nearly half of the cars sold in the United States were from Chevrolet, Cadillac, Buick, GMC or Pontiac. Now, the company's US market share is stagnant at 17.9 percent. That same number is half of just Chevy's 1963 market share. This is all despite GM going on a binge replacing or updating its models. "Market share increases are not instantaneous," Mark Reuss told Reuters at the 2014 Detroit Auto Show. "We've got a lot of baggage. Don't underestimate what people though of us, or these brands, through these hardships and 30 years." The reasons for the stagnant market share are numerous. Reuters points out that retooling of factories and a focus on limiting incentives are both good things for profit, but not necessarily for market share. There's also the troubling turnover of the brand's marketing department. These issues don't change the fact that Chevrolet has lost 1.4 percent of its market share in two years, and that Cadillac - arguably GM's most improved brand overall - has lost 1.2 percent in the same period. Part of that can be blamed on GM's avoidance of fleet sales in favor of more profitable customer sales. "Our focus has really been on retail and that's where we've got the growth," said Alan Batey, GM's interim global marketing boss. "We want to grow GM and that means growing market share and profits, but it's not at all costs," Reuss said. News Source: ReutersImage Credit: paul bica - Flickr CC 2.0 Earnings/Financials Buick Cadillac GM GMC sales profits