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General Motors posts record earnings, but global sales fall

General Motors started the year with record success. The automaker's $2.7 billion in adjusted earnings before interest and taxes was its highest ever in in the first quarter of 2016, up from $2.1 billion in from the same time period a year earlier. Net income grew to $1.95 billion, which was more than double the $953 million in the same period last year. The company's figures also beat analysts' predictions, according to the Detroit Free Press. Despite the financial growth, global sales actually decreased by 2.5 percent to 2.36 million vehicles. "We're growing where it counts, gaining retail share in the US, outpacing the industry in Europe and capitalizing on robust growth in SUV and luxury segments in China," CEO Mary Barra said in the company's financial announcement. GM did well in North America with an adjusted EBIT of $2.3 billion, up from $2.2 billion last year. Sales in the region also grew 1.2 percent to 800,000 vehicles. According to The Detroit Free Press, the company has been especially successful at selling more expensive models in the US. The company's average vehicle was $34,600 in Q1, about $3,000 more than the industry average. Elsewhere in the world, GM also showed improvement. Europe practically broke even after losing about $200 million last year, and Opel and Vauxhall sales grew 8.4 percent to more than 300,000 vehicles for the quarter. South America only lost $100 million, which was half as much as Q1 2015's $200 million loss. China remained flat at $500 million of income. Cadillac volume jumped 6.1 percent there, and Buick's deliveries increased 22 percent, thanks to the Envision crossover's success. GM Reports First-Quarter Net Income of $2.0 Billion 2016-04-21 EPS diluted of $1.24; First-quarter record EPS diluted-adjusted of $1.26 First-quarter record EBIT-adjusted of $2.7 billion GM Europe posts break-even performance DETROIT – General Motors Co. (NYSE: GM) today announced first-quarter net income to common stockholders of $2.0 billion or $1.24 per diluted share, compared to $0.9 billion or $0.56 per diluted share a year ago. Earnings per share diluted-adjusted for special items was a first-quarter record at $1.26, up 47 percent compared to the first quarter of 2015. The company set first-quarter records for earnings and margin, with earnings before interest and tax (EBIT) adjusted of $2.7 billion and EBIT-adjusted margin of 7.1 percent.

Cadillac boss: Don't ask why we have so many sedans

Ugh, crossovers. Car-based, high-riding station wagons, for some reason, sell in absurd numbers and make automakers lots and lots of money. That's why automakers with a strong lineup of CUVs are running strong, while sedan-heavy brands are struggling. Cadillac is all too aware of this fact. While the company is preparing to launch the new CT6 luxury sedan, it's also realizing four sedans, a coupe, a crossover, and a $73,000, old-school, body-on-frame SUV does not a healthy lineup make. Worse, though, as Cadillac President Johan de Nysschen rued during the LA Auto Show, is that the new CT6 is joining a segment already oversaturated. While it's a big, expensive vehicle, it's not much bigger or more expensive than the CTS and XTS sedans. "Please don't ask me why we have three cars in the same segment," de Nysschen said, stopping midway through an interview with Automotive News on the CT6's market placement to make the crack. "That's a whole different subject." As for those CUVs, the new XT5 debuted in LA, and it will eventually be joined by another much-needed CUV in 2018, AN reports. Related Video:

GM workers in Oshawa walk out in protest of plant closure

TORONTO/MONTREAL – Canadian Prime Minister Justin Trudeau on Monday expressed his "deep disappointment" in General Motors' decision to close its Oshawa plant, a move Canadian officials only learned about on Sunday and which led workers to walk off the job on Monday. GM said the closure affects a total of 2,973 assembly line jobs. GM's total employment in Canada is 8,150 direct jobs. Workers in the Unifor trade union walked out of the Oshawa plant "in protest," ahead of a meeting with GM about the announcement, a union spokeswoman said. "I've moved my family twice for this company and they do this to me," a tearful worker told CBC TV as he left the plant. Currently, the Oshawa plant builds the Cadillac XTS and Chevy Impala sedans. Under Unifor's four-year contract signed in 2016, GM must give the union a year's notice before closing the plant. The automaker intends to close the plant in December, 2019. A 2015 study commissioned by Unifor, which represents GM employees, estimated that shutting the plant would eliminate 4,100 direct jobs and reduce Ontario's gross domestic product by C$1.1 billion. But Jerry Dias, president of Unifor, said the move amounts to a breach of the automaker's contract with its employees. "We have a collective agreement that says they're not closing any of our facilities ... so we will do anything by any means to make sure that they live up to their word," Dias said at a news conference. Dias said the contract between Unifor and the company forbids GM from closing any of its Canadian plants during the contract period, which ends in September 2020. "They are not closing our damn plant without one hell of a fight." Canadian officials promised to aid auto workers affected by the 2019 closure, part of a wider restructuring by the automaker that will cut production of slow-selling models and slash its North American workforce. "I spoke with GM (CEO) Mary Barra to express my deep disappointment in the closure," Trudeau tweeted on Monday. "We'll do everything we can to help the families affected by this news get back on their feet." GM workers have been part of the heart and soul of Oshawa for generations - and we'll do everything we can to help the families affected by this news get back on their feet. Yesterday, I spoke with @GM's Mary Barra to express my deep disappointment in the closure.