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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.

Fingers point to dragged-out NHTSA investigation after second death by ARC airbag inflator

Safety advocates have increased criticism of the federal government's National Highway Traffic Safety Administration after an exploding airbag inflator that's been under investigation for more than six years killed a second person.  On Wednesday, NHTSA posted recall documents filed by General Motors that revealed the second death, the driver of a 2015 Chevrolet Traverse SUV with an inflator made by Tennessee company ARC blew apart, spewing shrapnel. No details were given about where and when the death occurred. NHTSA has said that ARC Automotive of Knoxville has manufactured about 8 million inflators used nationwide in vehicles made by General Motors, Fiat Chrysler (now Stellantis), Kia and Hyundai. “NHTSA should have been all over this along time ago,” said Rosemary Shahan, president of California-based Consumers for Auto Reliability and Safety. “There's just no denying that itÂ’s a (safety) defect.” NHTSA, the agency charged with with keeping America's automobiles and roads safe, began investigating ARC inflators in July of 2015 after two people were injured by flying shrapnel. The investigation became more urgent in 2016, when a Canadian woman driving an older Hyundai Elantra was killed by metal airbag fragments. Public records show only a little progress on the probe. In April, the agency posted a memo in saying it was reviewing volumes of information it received from ARC. Safety advocates such as Shahan say that the dragged-out investigation is an example of the deadly consequences that can result from an understaffed and underfunded agency. The second death should not have happened, Shahan said, and vehicles with faulty ARC inflators should have been recalled faster. The agency, Shahan said, is “grossly underfunded," but it still should have sought recalls of the ARC inflators. She said historically NHTSA has taken little action during Republican administrations but has ramped up safety efforts when Democrats control the White House. Messages were left Wednesday by the Associated Press seeking comment from NHTSA and ARC. At this time, relatively few vehicles are effected. The GM recall covers only 550 Chevy Traverse SUVs from the 2013 through 2017 model years, as well as Buick Enclave SUVs from 2008 through 2017. The automaker said in a statement that the faulty front driver's airbag inflators were either installed at the factory or in replacement airbag modules.

Buick Encore GX expected to come to the U.S. alongside the popular Encore

When we posted on Buick unveiling the Encore GX at Auto Shanghai 2019 as a longer-wheelbase version of the Encore, we though the GX trim could supplant our local Encore. According to Automotive News, citing "sources familiar with the plans," Buick will sell both the Encore and the Encore GX here. Brand boss Duncan Aldred told Buick dealers in January to expect a new model this year, and it appears the slightly larger subcompact crossover is that product. GM Authority reported the same news in March, the outlet saying that Buick intends to re-create in the U.S. the "model family" strategy the carmaker employs in China. Over there, our rebadged Verano sold as the first-generation Excelle, Excelle GT and Excelle GX, the GX being the wagon version of the sedan. When the Excelle trio moved a less expensive platform for the second generation, Buick introduced a Verano model in China in both sedan and Verano GS hatchback forms. AN reported that Buick is also planning a smaller three-row Enclave for China. The Encore GX differs fundamentally from both the Chinese- and U.S.-market Encores. Our Encore, a rebadged Opel/Vauxhall Mokka, rides on the Gamma II platform. The second-generation China-market Encore rides on GM's new Global Emerging Markets (GEM) platform, an updated version of the Gamma II for regions like China and Latin America. The Encore GX rides on the Vehicle Strategy Set - Front (VSS-F) architecture. AN wasn't sure yet where our U.S.-market Encore GX will be built, but doesn't expect it to come from China. The Encore GX here will slide into the lineup between the $23,200 Encore and $31,995 Envision. Whereas the Chinese model aims to stop hemorrhaging Encore sales in China, our version will want to expand the Encore success story. Since it went on sale in 2013, the model has posted double-digit sales increases here every year save for last year. In 2018 the model sold 93,073 units, accounting for 47 percent of brand sales. There's no reason to doubt the Encore GX will boost that number.