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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.

Cadillac to ditch China-only LWB models for global 'right size'

We often think of Buick being General Motors' poster child in China, but would it surprise you to hear that Cadillac is just doing a bang-up job in the People's Republic? It's true, the Standard of the World is on fire, and it's doing so with a surprising group of buyers that are going to push through globe-spanning changes for the brand. Cadillac's average buyer age in the People's Republic of China is just 34. Yes, younger buyers dominate the Chinese market, but according to Reuters, Cadillac's young buyers want to drive and they don't want the typical businessman's German-badged sedan. Cadillac understands this, and is setting about to exploit it with a shift in its Chinese strategy. According to President Johan de Nysschen, the company will begin moving away from the China-only, long-wheelbase models, like the ATS-L. Instead, it will push for a global "right size" design, along with some stylistic changes. "You will see a softening of some of the hard edges, and more three-dimension styling on the side of the car," de Nysschen told Reuters, while noting that the cars will still be "instantly recognizable as Cadillac." Even without these changes, though, Cadillac has bucked the trend in China. At 17 percent, the company's sales exceeded the PRC's overall market growth of 7.3 percent by a significant margin. In fact, Cadillac's 2015 gains outpaced the overall market growth in China over the past three years, as the brand jumped to nearly 80,000 units. And the company is hoping to push that even higher, Reuters reports, with President Johan de Nysschen targeting a 25-percent increase in 2016. Related Video:

If Cadillac’s smart, the CT5 will be a CTS without baggage

Cadillac is, mercifully, about to rationalize its lineup, something that's been a long time coming. The CTS is one of those cars that gets admiration from reviewers, like us, for a concerted effort from GM to engineer an underlying platform that matches the Germans in terms of raw dynamics. From buyers, it gets not even a shrug as they, oblivious to its existence, walk right into BMW and Mercedes dealerships. The reasons for this have a lot to do with the sheer brand recognition, and the image, of the German competitors. You can't really lay that all at GM's feet, but what you can do is critique the uninspired drivetrain selection. The 3.6-liter V6 is a crude implement, making its 335 horsepower roughly. The BMW's equivalent inline six makes its power smoothly, with modern forced induction. There's no directly comparable E-Class sedan until you get into the V-Sport versus E43 situation, but the turbo four is smooth. And the interior? No question. The Mercedes is jaw-slacking. The story for the CTS's turbo four is largely the same. Some blame also has to be leveled at the first- and second-generation CTS sedans, which adopted an odd strategy: sell a slightly larger sedan to folks looking at 3-Series, A4, and C-Class, but at about the same price. Folks weren't interested in a larger car for the same money. Despite the third-gen CTS's growth into the 5-Series size class, the CTS still seems like an odd in-betweener in the sport luxury segment – psychologically, if not physically. CTS sales are in the toilet in 2017, and GM is smart to shake things up. So with the announcement that Cadillac head honcho Johan de Nysschen has finally been allowed to kill off underperforming models, the CTS is toast. (As is the ATS, and much more importantly, the XTS – a shambling dinosaur of a sedan.) What's next is the CT5, and that's what we're interested in now. Cadillac has until 2019 to figure out what the CT5 actually is. That isn't a lot of time, so our money is on it being a repositioned, rationalized CTS. The platform's not bad; it's heavier than the larger CT6, but it's fairly modern. Sadly, it's unlikely that any of the standard powertrain options will get a revamp, but maybe some additional sound deadening or an active engine mount system to reduce NVH will quell the V6's bad habits. View 32 Photos More importantly, Cadillac will get a chance to work on the interior look, almost certainly aligning it more closely with the much improved CT6. That'll help a lot.