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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.

2020 Cadillac CT5 in New York: 7 questions with the chief engineer

Cadillac revealed the 2020 CT5 at the New York Auto Show, and we decided to sit down and have a chat with chief engineer Mike Bride to learn more about the car. You can read our reveal post here to get the full download, and then read on below to learn a bit more. Cadillac is still rather coy about any performance model to spawn from the CT5, but things appear to be looking up after our conversation that you can read below. Q: What's the driving nature of this car? Should we expect something similar to the CTS and ATS? A: Yes, you can see it's built off the rear-wheel-drive architecture. Our goal was to retain all of that fun-to-drive nature. Direct steering feel, responsive handling. Going forward, we ask how we can continuously improve, and that was really about driving more sophistication in the ride, a much more mannered car that's better for impact harshness and rolling isolation, really provides comfort when you want comfort over tire strips and heaves in the road. Really getting that level of isolation, but not compromising that handling and direct steering feel of the Cadillac sedans we've grown accustomed to. Q: How is this car different from the CTS underneath, and other Alpha platform cars? A: I would say this is a major revision. A lot of new parts, a lot of new part numbers, a significant evolution. In the suspension space, the links are all new, and there's been a lot of work done in isolation, so the bushings and strut mounts are all new. We've evolved the Alpha platform to now get the ride control and road isolation, the comfort aspects of it all. There are a lot of structural improvements like a changed wheelbase, an evolution in rear foot-swing and foot space from the fuel tank area to get in and out of the car better. As we developed this structure, it was about overall structural body stiffness, and impedance at the chassis attachments to really get that level of isolation from road inputs. We try to have a calm floor, a steering wheel that doesn't vibrate, and quiet to the driver's ear. Those were the paths we went after to really drive the structure to the right stiffness requirements, structural integrity, a lot of development into suspension bushings, tuning elements, strut mounts. We have a new damper technology, a ZF damper. It has MVS damper technology. It's a multi-valve system that provides less harshness from an NVH standpoint and a great optimization balance of motion control with ride inputs.

Hotter Cadillac ATS-V+ could use LS7 power

Rumor has it Cadillac is working on an even hotter version of the ATS-V, possibly called ATS-V+. And the latest intel from Motor Trend suggests this new model might have a great, big V8 under the hood. The V8 in question is the high-revving, naturally aspirated 7.0-liter LS7 from the Camaro Z/28. The hand-built engine makes 505 horsepower and 481 pound-feet of torque in the Z/28 – a nice increase over the 464 hp and 445 lb-ft in the standard ATS-V, which uses a twin-turbocharged 3.6-liter V6. Motor Trend says the ATS-V+ will come to market with an eight-speed automatic transmission, as well as the seven-speed manual 'box from the Corvette. A dual-clutch transmission will come to market later. Of course, we'll believe it when we see it. But an LS7-powered ATS-V sure sounds like a great package to us. Here's hoping.